Morgan Stanley pulls 'like' stance on Argentina bonds after Milei election hammering

LONDON, Sept 8 (Reuters) - U.S. investment bank Morgan Stanley removed its 'like' stance on Argentina's international bonds on Monday following a heavy defeat for President Javier Milei's party in weekend elections in the province of Buenos Aires.

"These results appear to increase the probability of the central downside scenario in which the market questions the likelihood of continued reforms, and uncertainty rises around the future external financing sources," Morgan Stanley analysts said in a note to clients.

"As a result, we close our suggestion added only last week to buy into the recent weakness despite what are likely to be much cheaper levels today," they added.