Brazil Stocks Fall 13.9% After Lula’s Win
Brazil’s main stock index lost 13.88% in one session after Lula’s win, its biggest fall since 2020, and the real sank. Here is what US investors face. The post Brazil Stocks Fall 13.9% After Lula’s Win appeared first on The Rio Times .
Brazil stocks plummeted 13.9% on Monday following Luiz Inácio Lula da Silva's re-election as president on Sunday. The Ibovespa, Brazil's main stock index, dropped 13.88% to close at 176,608 points, marking the largest single-day decline since March 2020. The dollar strengthened to around 5.41 reais, up 8.4% from 4.99 on Friday, as investors bet on Lula's victory.
B3, the São Paulo exchange, halted trading with a circuit breaker, the first since March 2020. Banks and Petrobras, Brazil's state-run oil giant, suffered the most significant losses, with Itaú Unibanco falling double digits and Petrobras dropping about 8%. Although the market recovered slightly by midday, stocks remained well below their opening levels.
The weakening real currency, now at 5.41 reais per dollar, makes imports and dollar debts more expensive for Brazilian firms while benefiting exporters.
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