This week: Voters in Chile reject traditional parties in constituent assembly election. The Dominican Republic builds a wall to keep neighboring Haitians out. Venezuela may be heading toward a political truce.
Chile rejects mainstream politics in constitution vote
Since 2019, Chile’s political landscape has been shrouded in uncertainty. While last weekend’s election of a 155-seat constituent assembly was seen as the first step towards healing, the astounding blow suffered by traditional parties leaves more questions than answers.
Black Monday. On the first trading day after the election, Santiago’s benchmark stock index IPSA crashed by nearly 10 percent — the biggest drop in over a year — while the Chilean Peso lost more than 2 percent against the U.S. Dollar. On Tuesday, assets still faced volatility despite early gains.
Puzzle. According to José Giraz, director at brokerage Skilling, markets expected change, but the poor performance of conservative candidates in this weekend’s election suggests they will have little say in Chile’s new constitution. With such diverse interests represented in the elected constituent assembly, there are fears the process could drag on for longer than the stipulated nine months.
- “This uncertainty will cause investors to choose other markets and cause capital flight,...