Brazil's real and stocks fell sharply on Monday after Lula's surprise re-election, which caught investors who had bet on a Bolsonaro win. Trading was briefly halted, equity sales worth $6bn were derailed, and analysts fear fiscal slippage in his final term.
Brazil held a presidential election pitting incumbent Luiz Inácio Lula da Silva against Jair Bolsonaro. Markets had largely positioned for a Bolsonaro victory, expecting tighter fiscal policy, so Lula's win triggered a sell-off in Brazilian assets.
Brazil's real and stocks sank on Monday after Lula's re-election, which caught investors who had positioned for a Bolsonaro victory. Trading was briefly halted and equity sales worth $6bn were derailed, while analysts fear a fiscal slide in his final term.