Brazil’s real sinks after Lula’s re-election victory

Brazil’s real fell 12 percent against the US dollar after President Luiz Inácio Lula da Silva’s unexpected re-election, while Bovespa stock index futures dropped nearly 15 percent. Trading on Brazil’s stock exchange was halted for 30 minutes after the Bovespa index fell 10 percent, triggering a circuit breaker. Rachel Ziemba said right-wing candidate Flavio Bolsonaro’s refusal to concede had added to financial uncertainty, although Lula’s margin of victory suggested the result would stand. Interest rate futures rose 3.1 percent after Lula’s win, after investors had previously expected tighter fiscal policy under Bolsonaro.