De Telefónica a Santander: los valores más expuestos a Brasil caen con fuerza en el Ibex

On the day of Spain's general elections, investors in the Ibex index reacted strongly to the outcome of Brazil's presidential elections. The second round of voting in Brazil saw former president Luiz Inacio Lula da Silva defeat far-right candidate Jair Bolsonaro, securing 51.76% of the vote to Bolsonaro's 48.24%. This shift in Brazilian politics caused sharp declines in several Ibex-listed companies with significant exposure to the Brazilian market.

Three weeks prior to the elections, the Ibex had experienced a notable boost from companies heavily invested in Brazil, including Santander (+4.52%), Telefónica (+3.38%) and Mapfre (+1.43%). However, this positive momentum was short-lived, as the results of the second Brazilian round of voting led to renewed selling pressure.

In the current trading session, the previously positive gains have turned into sharp declines as investors reassess the implications of Lula's victory. The negative market sentiment is particularly pronounced for companies with a substantial portion of their earnings coming from Brazil, such as Telefónica, which dropped 8%, Santander (5%), and Mapfre (3%). These declines highlight the volatility of the Ibex index in response to international political events, particularly those in Brazil.