Brazilian markets tumble on Lula's election victory

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Brazil’s currency suffered its worst daily fall this century and its benchmark stock index plummeted 14% as investors soured on the country’s economic prospects following President Luiz Inácio Lula da Silva’s reelection.
During his third term, Brazil’s budget deficit expanded to more than 8% of GDP as government spending soared and overall growth cooled, driving surging debt levels.
While the political challenge against Lula’s victory appears to have subsided for now — the party of opposition leader Flávio Bolsonaro, who said the vote was rigged, conceded the election and US President Donald Trump signaled he would not intervene — Brasília is nonetheless staring at a fiscal reckoning. “Attention now shifts to Lula’s economic team and fiscal plan,” an expert said.

document fetched 2026-10-28 02:52 · canonical https://semafor.com/article/10/27/2026/markets-tumble-on-incumbent-lulas-election-victory-in-brazil