By Marc Jones and Rodrigo Campos

LONDON (Reuters) -Some of the world’s top investment banks are backing Argentina’s markets to bounce if fiery leader Javier Milei comes through key election tests which begin this weekend without too much damage, but suffer if he doesn’t.

The rally fostered by Milei’s chainsaw-style reforms has taken a significant hit in recent weeks as a mix of political pressure, scandal and currency worries has put investors on edge.

The main stock market fell over 14% last month, the most since February 2024, while international government bonds have sold off and an accelerating slump in the now-unpegged peso saw the treasury u-turn this week and start intervening in the FX market.

The focus for Sunday’s Province of Buenos Aires (PBA) election is on how much of the

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