Brazil's Ibovespa plunges 17% and real drops 12% after Lula's surprise reelection, triggering trading halt.
Brazil's stock market crashed with the Ibovespa index falling over 17% and the Brazilian real weakening nearly 12% against the US dollar after President Luiz Inácio Lula da Silva won an unexpected reelection. The sudden market drop led B3 to suspend trading temporarily as investors unwound bets on Lula's opponent. The turmoil extended to bond markets, with the Treasury canceling auctions amid rising borrowing costs and currency instability, raising concerns about fiscal policy and economic growth. Investors now await clarity on Lula's fiscal plans and market stabilization.
Brazil's stock market crashed with the Ibovespa index falling over 17% and the Brazilian real weakening nearly 12% against the US dollar after President Luiz Inácio Lula da Silva won an unexpected reelection. The sudden market drop led B3 to suspend trading temporarily as investors unwound bets on Lula's opponent. The turmoil extended to bond markets, with the Treasury canceling auctions amid rising borrowing costs and currency instability, raising concerns about fiscal policy and economic growth. Investors now await clarity on Lula's fiscal plans and market stabilization.