Argentine markets react to Macri's election: Buenos Aires stocks off 5.1%; dollar rose slightly.

The Buenos Aires Stock Market's Merval index of big board shares closed Monday with a decline of 5.1% to 13,448.67 points. The selloff occurred in the first hour of trading after a brief rise and amid heavy volume. Monday was the first trading day after the opposition, right-wing candidate, Mauricio Macri, won Sunday's presidential runoff by less than 3%.

The steepest declines occurred in shares of Pampa Energy (13.6%); Banco Francés (8.6%); Grupo Galicia (7.7%); Banco Macro (6.5%); Comercial del Plata (6.2%); and YPF (4.6%).

The Argentine bond market also slid on the news, although more moderately: Bonar 2017 fell 2.1%; dollar-denominated Discounts, 1.3%; and Bonar 2024, 0.9%. All had been at or near record highs.

The official dollar exchange rate rose a penny to $ 9.685 at major banks and agencies in the city, while the Central Bank sold US$ 90 million in the exchange market. The U.S. dollar on the black market, in turn, closed up 12 cents to 15.19 pesos after starting the day with a slight downward trend.

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So while the press sprays the bubbly to celebrate the Macri win, big business in Argentina has voiced its doubts. Why?

Because a steep devaluation and austerity policies of the kind Macri's team has already hinted at would sharply increase their costs, while at the same time hurting sales once their clients and the public in general feel the sting in their wallets. Local wholesale prices, in fact, are reportedly already rising fast on the mere anticipation of Macri's IMF-style policies.

Can't bullshit a bullshitter.