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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Argentine leader faces new political landscape Mon Jun 29, 2009 3:08pm EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Helen Popper BUENOS AIRES (Reuters) - Argentine President Cristina Fernandez faced a new political landscape on Monday after losing control of Congress in a mid-term election as voters rejected her combative style and economic policies. Former President Nestor Kirchner, who is Fernandez's powerful husband and predecessor, was defeated by a millionaire businessman from a rival faction within the ruling Peronist party in a high-profile congressional race. Kirchner resigned as the head of the party on Monday and was replaced by Buenos Aires Governor Daniel Scioli in fallout from the election. The government's electoral losses may lead to political gridlock and a power struggle in the Peronist party as rivals jostle for positions ahead of a 2011 presidential election. Argentine stocks, bonds and the peso currency all rallied on the election result as investors bet the Kirchners would be forced to relax interventionist economic policies that are unpopular with markets. [nN29383705] "We think that this change in political landscape will translate into a much more pragmatic approach for the conduct of economic policy," Bulltick Capital Markets said in a report on Monday. A government source, who asked not to be named, said Fernandez could replace several ministers following the humiliating defeat. The election was widely seen as a referendum on the Kirchners. The former president had hoped to shore up flagging support for his wife, whose popularity rankings have languished at about 30 percent for most of her 18 months in office. Kirchner had been believed to be planning to run again for president in 2011, but he now cannot use a victory in Buenos Aires province as a springboard. "The presidential race for 2011 will now dominate the local political scene and there is a risk of seeing earlier presidential elections next year," said Alberto Ramos, senior economist at Goldman Sachs, in a report. Several political leaders, all of them Fernandez critics, were seen as being strengthened by Sunday's vote as either they or congressional candidates allied with them fared well. They include Vice President Julio Cobos, who has broken ranks with the Kirchners, Buenos Aires Mayor Mauricio Macri and Senator Carlos Reutemann, a Peronist. A SHARP BLOW In the most closely watched race on Sunday, a slate of candidates headed by businessman Francisco de Narvaez took 2.5 percentage points more votes than the slate headed by Kirchner in Argentina's most populous province, Buenos Aires. According to near-complete official results, De Narvaez's slate won 34.6 percent of the vote compared to Kirchner's list's 32.1 percent. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: Israel to build 50 new homes at West Bank settlement Also on reuters Worst could be over for Manhattan office market Controversial filter software faces tough sell in China Confused about fitness regimens? Poll tracks trends More International News Iran upholds Ahmadinejad poll victory after recount | Video Leftist leaders rally around Honduran president | Video Iraqis rejoice as U.S. troops leave Baghdad Israel to build 50 new homes at West Bank settlement | Video Lebanon's Hariri begins tough job to form government More International News... Related News Argentina government seen more frugal after vote setback 1:28pm EDT SCENARIOS: Policy directions after Argentine election 1:17pm EDT Uncertainties remain after Argentina vote 2:27am EDT FACTBOX: Who is Argentine opposition leader De Narvaez? 2:43am EDT Editor's Choice Slideshow A selection of our best photos from the past 24 hours. 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