Lula wins Brazil runoff, markets brace for sharp sell-off
Briefing by News4U · First published
Lula defeated Flavio Bolsonaro 51.8% to 48.2%. Brazilian ETFs fell 16% in Japan; traders expect heavy Monday selling that may trigger circuit breakers.
Lula defeated Flavio Bolsonaro in Brazil's presidential runoff, securing 51.8% of the vote to 48.2%. Brazilian ETFs fell 16% in Japan, the largest single-day drop since 2020, and CME currency derivatives showed the real at 5.55 per dollar, implying a decline of more than 10% from Friday's close. [1] [2]
Traders in São Paulo forecast intense selling on Monday that could trigger circuit breakers. Monte Bravo estimated the Ibovespa could drop 11% in the first hour. Citigroup's survey of 73 investors showed most expected the real to fall at least 5% and swap rates to rise more than 1 percentage point. [2]
Sources
- 快讯
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