The Zhitong Finance App learned that on Monday, Brazilian companies listed on the US stock market plummeted. Petrobras (PBR.US) fell nearly 17%, Itaú Unión Banco (ITUB.US) fell more than 20%, Bradsco Bank-Preferred (BBD.US) fell more than 28%, Nu Holdings (NU.US) fell more than 20%, XP Inc (XP.US) fell more than 52%, and MercadoLibre (MELI.US) fell more than 11%. According to the news, according to data from Brazil's High Electoral Court, current left-wing President Lula defeated Senator Flavio Bosonaro with 51.8% to 48.2% of the vote in the second round of the presidential election on Sunday, winning an unprecedented fourth term.

Previously, the market generally bet that Bolsonaro, which is more pro-market, will win the election and push for economic reforms. Since the first round of voting, the Brazilian stock market has surged by nearly 7%, and the real has appreciated by nearly 5%. Morgan Stanley said that the Brazilian stock market is expected to fall by 20%-30%, with large differences in decline. Additionally, the USD/BRL exchange rate will test 5.60 and could reach 6.00 if Brazil's fiscal concerns intensify.

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