From BigGo Finance · BigGo Finance · · 1m
Brazil Presidential Election: Lula Victory Sends Real Plunging
Lula's election win triggers 17% stock plunge as Brazilian Real hits year-to-date low.
In brief
Lula's election win triggers 17% stock plunge as Brazilian Real hits year-to-date low. Brazil's presidential election victory by Lula caused Brazilian stocks to drop over 17% and the real to reach its lowest year-to-date value. Originally reported by BigGo Finance.
Brazil Presidential Election
Lula won Brazil's presidential election.
Brazilian Real Plunges
The real hit year-to-date lows of 28.11 yen against the yen and 5.6042 reais per dollar.
Stock Market Tumbles
Brazilian stocks fell more than 17% at one point, triggering a circuit breaker.
Market Reversal
The market reversed its prior 'triple rally' bet on a Bolsonaro victory.
Fiscal Concerns
Market participants warned Lula's spendthrift policies could delay fiscal reconstruction.
Historical Context
The real's surge mirrors past crises including the 1999 currency crisis and 2008 financial crisis.
Economist Views
Cristiane Quartaroli expects currency pressure until transition information is available.
Market Outlook
Ettore Sanchez predicts dollar will trade around 5.50 reais for some time.
The takeaway
Brazil's presidential election victory by Lula caused Brazilian stocks to drop over 17% and the real to reach its lowest year-to-date value.
