Brazilian markets mixed as Ibovespa falls, dollar drops after Lula reelection
Brazilian markets showed mixed results on Tuesday, October 27, 2026, as the Ibovespa index fell 0.51% to 175,710.05 points while the commercial dollar dropped 0.97% to R$ 5.350. The stock market decline follows Monday's 13.88% crash, the largest since 2020, triggered by President Luiz Inácio Lula da Silva's reelection, which erased R$ 734 billion in market value. Investors remain cautious amid fiscal uncertainties, with Finance Minister Dario Durigan announcing measures targeting the fiscal target center. Strategist Marcos Bassani cited legal insecurity, fiscal deficit, and unclear improvement prospects as pressures on Brazilian assets. Future interest rates fell after Monday's surge, while the dollar's decline was attributed to profit-taking. US stocks rose, with investors monitoring tech earnings and AI investment prospects.