Lula wins Brazil runoff as Ibovespa drops 17.34% intraday

Luiz Inácio Lula da Silva won Brazil’s presidential runoff on October 25, and the Ibovespa fell sharply the next day, dropping as much as 17.34% intraday as trading was briefly halted. The Superior Electoral Court said Lula received 51.79% of valid votes, defeating Sen. Flávio Bolsonaro, who received 48.21%. The reported market low was an intraday move, not a closing figure. On October 26, B3 suspended trading for 30 minutes after the benchmark index reached a 10% decline, in line with its circuit-breaker rules. After trading resumed, the Ibovespa reached 169,516.43 points, down 17.34% from its prior level, according to a report citing Estadão Conteúdo. The decline followed the election result, though the precise extent to which it persisted through the close was not established in the reporting. Investors and analysts cited concerns about fiscal policy and the outlook for public debt as potential pressures on Brazilian assets. Ahead of the election, some investors had positioned for a different result and expectations of tighter fiscal policy. Analysts said the incoming administration’s approach to public finances, its choice of finance minister and any debt-control plan...