Brazil's stock futures plunged nearly 15% after Lula won reelection

On Monday, Brazilian assets sold off after President Luiz Inácio Lula da Silva won another term in Sunday’s runoff, with Bovespa futures down nearly 15% and the real falling as much as 12%, halting trading. Lula defeated Senator Flávio Bolsonaro in the October 25 runoff, securing a fourth nonconsecutive presidential term. Investors had favored Bolsonaro as more business-friendly, and after the first round stocks had their biggest rally since 2020 while the real gained 5%. The reversal came amid existing government-debt concerns and trade tensions with the Trump administration, which had imposed heavy tariffs and sanctioned Supreme Federal Court Justice Alexandre de Moraes; Brazil filed two WTO complaints against Washington.