Brazilian President Luiz Inácio Lula da Silva went against the wind and won the Brazilian presidential runoff, stopping the right-wing wave that swept through Latin America, and shattering predictions from the outside world that the 80-year-old political veteran would end his extraordinary political career. However, this unexpected result is expected to disrupt the “Bosonaro deal,” and the Brazilian market may fall sharply when it opens on Monday. According to the Brazilian Electoral Court, in Sunday's vote, Lula won 51.8% of the vote and Flavio Bosonaro won 48.2% of the vote. Regarding the election results, Bosonaro asked the court to declare the final election invalid, accusing the Supreme Court of ordering an extension of the voting period at the last minute, which is tantamount to a temporary change in the rules. The situation on election day was chaotic, accompanied by complaints that voters were suppressed, and the voting period was temporarily extended for two hours. Left-wing leader Lula did not win by a narrow margin until the last minute, thanks to the support of voters in the poorest region of Brazil, which is also Lula's traditional electoral base. Lula has long been a representative figure against “Trumpism” in Latin America. Today, this astonishing reversal of the election is expected to trigger severe shocks in the Brazilian market. Initial signs are already showing. ETFs tracking Brazilian stocks plummeted 16% in the Japanese market on Monday. Traders expect a sharp sell-off in the Brazilian market on Monday morning, which could trigger a collapse in the stock market. Societe Generale strategists expect the real to fall by 8% to 10% on Monday. The Brazilian real has accumulated a cumulative appreciation of more than 9% since this year.
Zhitongcaijing · 2d ago
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Brazilian President Luiz Inácio Lula da Silva went against the wind and won the Brazilian presidential runoff, stopping the right-wing wave that swept through Latin America, and shattering predictions from the outside world that the 80-year-old political veteran would end his extraordinary political career. However, this unexpected result is expected to disrupt the “Bosonaro deal,” and the Brazilian market may fall sharply when it opens on Monday. According to the Brazilian Electoral Court, in Sunday's vote, Lula won 51.8% of the vote and Flavio Bosonaro won 48.2% of the vote. Regarding the election results, Bosonaro asked the court to declare the final election invalid, accusing the Supreme Court of ordering an extension of the voting period at the last minute, which is tantamount to a temporary change in the rules. The situation on election day was chaotic, accompanied by complaints that voters were suppressed, and the voting period was temporarily extended for two hours. Left-wing leader Lula did not win by a narrow margin until the last minute, thanks to the support of voters in the poorest region of Brazil, which is also Lula's traditional electoral base. Lula has long been a representative figure against “Trumpism” in Latin America. Today, this astonishing reversal of the election is expected to trigger severe shocks in the Brazilian market. Initial signs are already showing. ETFs tracking Brazilian stocks plummeted 16% in the Japanese market on Monday. Traders expect a sharp sell-off in the Brazilian market on Monday morning, which could trigger a collapse in the stock market. Societe Generale strategists expect the real to fall by 8% to 10% on Monday. The Brazilian real has accumulated a cumulative appreciation of more than 9% since this year.
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