Argentina ADRs slide after Milei's ruling party records heavy defeat in Buenos Aires

U.S.-listed shares of Argentine companies decline premarket after President Javier Milei's ruling party saw a heavy election defeat in Buenos Aires province

Provisional official tally on Sunday showed opposition Peronist party triumphed in legislative elections, President Milei's party in distant second place

"While we assess that the provincial election stands to have a very limited effect on the policy mix of the Milei administration, it does represent a political setback for the government," Goldman Sachs analysts say in a note

Financials including Grupo Supervielle SUPV.N, Banco Macro BMA.N, Banco BBVA Argentina BBAR.Nand Grupo Financiero Galicia GGAL.O slide between 6.7% and 14.5%

State-run oil company YPF YPF.N slides 10.3% and gas transportation firm TGS TGS.N down 5.5%

Global X MSCI Argentina ETF ARGT.P declines 8.6%

Investors say early market indications priced 5 to 6 point falls in the country's international bonds as well