Brazilian markets record a historic drop after Lula's unexpected victory
Bovespa index futures point to a 15% plunge at the opening and the real falls 8% against the dollar
Luiz Inácio Lula da Silva's comeback in the Brazilian presidential election has led to a historic collapse in the markets. The Bovespa index futures indicate a 15% drop at opening, according to Bloomberg, with the stock exchange expanding the trading range to 20% to accommodate the surge in trading. The real has depreciated by 8% against the dollar to 5.43 reals per dollar, and Brazilian debt interest rates have risen as investors demand higher returns to offset the risk.
The drop may exceed the 14.7% record set in 2020 and is comparable to the 15.83% plunge in 1998 following Russia's debt payment suspension.
Written by urgent.news from El Pais's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
