Brazil Markets Crash as Bolsonaro Refuses to Concede
Investors dumped Brazilian stocks and the real after Lula’s win, with the Ibovespa falling 13.88% and trading halted by a circuit breaker, B3 said.
- On Monday, President Luiz Inacio Lula da Silva won a fourth term with 51.8% of the vote, defeating Sen. Flavio Bolsonaro, triggering a circuit-breaker pause as the Bovespa plunged nearly 17% and the real fell over 10%.
- Traders were caught off guard, having bet on a Bolsonaro victory and tighter fiscal policy. "I'm not surprised the real is sinking sharply; traders are covering their bets," said Rachel Ziemba, adjunct senior fellow at the Center for a New American Security.
- Broad selling hit international markets, with Nu Holdings stock falling 21% and MercadoLibre sliding 10% in New York. Petrobras stock lost over a tenth of its value in São Paulo as investors reacted to the unexpected runoff outcome.
- Investors are closely watching for the next finance minister as the primary signal for future fiscal policy. "For investors, first and foremost would be who would lead the Ministry of Finance," Goldman Sachs analysts Alberto Ramos and Panteleymon Semka said.
- Political uncertainty grew as Bolsonaro refused to concede the election. Brazil's Treasury cancelled auctions for fixed-rate government debt slated for Tuesday and Thursday, as the country manages a public debt load exceeding 82% of GDP.
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124 Articles
The stock exchange referential plummeted preliminary 13.43% to 177 thousand 539.81 points, in its highest daily percentage decrease since March 2020 and after losing more than 16% in the session
São Paulo, 26 Oct (EFE).- The bag of São Paulo remained red throughout Monday and finally closed with a sharp fall of 13.88 %, after the re-election of Brazilian president Luiz Inácio Lula da Silva, in the elections held on the eve. The Ibovespa, reference index of the Brazilian park, ended in [...] The entry The bag of São Paulo closes with a fall of 13.88 % after Lula's victory was first published in HolaNews.
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