ARS craters on shock primary.......>

EMERGING MARKETS: ARS craters on shock primary result

-LatAm currencies got plenty of coverage Monday, with the ARS spiralling to

fresh record lows as President Macri surprisingly suffered at primary elections

held over the weekend. Pricing was patchy at best, but the ARS fell as much as

35% against the USD, with the only relief coming as the Argentine central bank

stepped in to spend $50mln on direct intervention. The rate slightly stabilised,

but still nurses losses of over 25% at typing. The outlook remains unclear, but

a speech at 4.30pm local time (2030BST/1530ET) from President Macri will be

carefully watched.

-The ramifications were clear for broader LatAm FX space, as BRL, MXN, CLP and

COP were all dragged lower, underperforming all others in EM. The swift and

sharp dent to risk sentiment took a lot of the air out of TRY, which helped

USD/TRY bounce back above the 200-dma at 5.5635.

-Indian CPI data and Polish trade balance are the data highlights Tuesday,

although focus will likely remain on the global risk picture, with any response

to Argentina's currency collapse carefully watched.