Posted on 10/26/2026 9:25:08 AM PDT by E. Pluribus Unum
Investors had hoped for friendly overhauls such as spending cuts and deregulation
Brazilian financial assets were swept by a historic rout Monday after the surprise election victory of President Luiz Inácio Lula da Silva wrong-footed investors who had bet on his defeat.
The Brazilian real slid more than 10% against the U.S. dollar while the country’s benchmark stock index fell nearly 17%, which would mark a record daily loss. The index’s plunge triggered a circuit breaker, leading Brazil’s stock-exchange operator to temporarily halt trading.
Global investors had piled into Brazilian markets in recent weeks after Flávio Bolsonaro—the eldest son of former President Jair Bolsonaro—bested da Silva in the first round of the election in early October. Investors cheered Bolsonaro’s anticipated election victory, sending the Bovespa stock index to a record, on hopes he would carry out investor-friendly overhauls such as spending cuts and deregulation.
On Sunday, the leftist leader won 51.8% of the vote against 48.2% for Bolsonaro, electoral authorities said, with over 99% of the votes counted. He was just two days away from turning 81.
“Everyone is very surprised today,” said Chris Turner, head of markets research at ING. “There was a strong consensus that it was going the way of Bolsonaro which was seen as positive for local assets.”
Instead of the expectation of fiscal consolidation under Bolsonaro, traders will likely take the view that Brazil will muddle through for the next four years, said Thierry Wizman, Macquarie Group global foreign-exchange and rates strategist.
Da Silva has made lavish spending promises, championed a shorter working week without a cut in pay and proposed debt relief for struggling households. He also floated free public transportation on weekends, seeking to reconnect with poorer voters who had long formed the backbone of his support.
Brazil’s international bonds sold off Monday, driving...
(Excerpt) Read more at wsj.com ...
Oh, I’m not surprised.
Ha Ha!
De Gaulle was right, “Brazil is the country of the future, and always will be.”
Surprise election!
Lula was losing so a judge declared an emergency and then he won.
Nothing suspicious about that.
I guess people remain clueless and naive. No one should have been surprised Lula would steal it like last time. Especially since he is running the country already. In other words, he counts the votes and runs the courts.
In that case, they shouldn't even try.
Glad you cleared that up.
Did people not think BRICS would allow Bazil to have a fair election?
Lula was losing so a judge declared an emergency and then he won.“
That “judge”’was Lula’s personal lawyer.
I wonder if our forces can lock in on Lula and capture him the way they did Maduro. It’s probably the only way Brazil can be saved at this point.
“That ‘judge’ was Lula’s personal lawyer.”
Are you series?
Just awful.
Before becoming a judge, he was Lulas defense lawyer in corruption cases. Again, there are no biased judges, they follow the law so nothing to see here.
“I wonder if our forces can lock in on Lula and capture him the way they did Maduro. It’s probably the only way Brazil can be saved at this point.”
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Sad that Lula won, but I’m sure that Trump has backchannels to him with plausible deniability that will put Lula on notice to toe the line. That’s about the best we can do.
The markets are smarter than polls or people. There is no stronger signal of outright fraud.
Hughly series!
Brazil is beyond saving.
Surprise election win? 🤣🤣🤣🤣🤣🤣🤣 Markets crashing? NOT surprised.
Coming to America if the Communist Baby Killing Party wins the primaries.
I wonder who was leading just before the judge made his ruling.
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