Argentina’s main stock market index, the S&P MERVAL, fell an incredible 48% in US dollar terms yesterday, as its current president Mauricio Macri suffered a resounding defeat in primary elections. Under Macri, who is seen as ‘market friendly’, equity and bond markets have struggled, but yesterday’s 48% collapse in equity prices marks the second-biggest one-day drop since 1950 on the 94 stock exchanges Bloomberg follows. Adding insult to injury is the fact that before yesterday, Argentina already held that position with a 45% one-day drop. To be clear, Argentina’s weight in both global equity and bond indices is small, but some spillover effects to other fragile countries cannot be ruled out.