Lula wins Brazil election, markets brace for sharp Monday sell-off
Briefing by News4U · First published
Lula defeats Bolsonaro with 51.8% of the vote; traders expect Ibovespa to open sharply lower and the real to weaken more than 10%.
Sina Finance reports that after the October 25 runoff, Lula (Luiz Inácio Lula da Silva) won 51.8% of the vote to Flavio Bolsonaro’s 48.2%. [1]
Early signals point to a steep Monday decline: a Brazil ETF fell as much as 16% in Tokyo trading, and CME real-dollar contracts showed 5.55, implying more than 10% depreciation from Friday’s close. [1]
Monte Bravo estimated an 11% drop in the Ibovespa in the first hour; a Citi survey of 73 investors had expected at least 5% real depreciation and a rise of more than 1 percentage point in swap rates. [1]
Sources
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Sina Finance · · Full text