Brazilian Markets Plunge 16% After Lula's Election Win

Brazilian markets plunged after Luiz Inácio Lula da Silva won the presidential election, with the São Paulo stock exchange falling 16 percent and trading halted for half an hour. The automatic trading halt was triggered when the leading index dropped more than 10 percent, and the currency, the real, also lost about 12 percent against the U.S. dollar. An analyst described the selloff as a "tsunami hitting all Brazilian assets." The sharp declines stem from market expectations that right-wing candidate Flávio Bolsonaro, who won the first round, would prevail. Uncertainty is expected to persist for several weeks.