Mexico Peso Falls as Ruling Party Landslide Spooks Investors
- Peso leads global losses as Morena seen getting supermajority
- Money managers worry about more meddling in Mexican economy
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Mexican assets tumbled after preliminary election results showed the ruling party winning in a landslide that may empower it to increase state control of the economy and undermine checks on its power.
The peso led global losses, sinking more than 4% and heading for its worst one-day loss since June 2020, while stocks headed for their biggest slump since the 2008 financial crisis. Swap rates climbed. Official projections showed Claudia Sheinbaum, the protege of President Andres Manuel Lopez Obrador, winning by at least 30 percentage points.