Brazilian markets plunge after Lula reelection, trading halted

Brazil’s stock exchange halted trading Monday after the Ibovespa index fell 10 percent, following President Luiz Inacio Lula da Silva’s reelection, with the real weakening 12 percent against the U.S. dollar and futures tumbling nearly 15 percent. The selloff reversed a rally sparked by right-wing rival Flavio Bolsonaro’s first-round lead, with interest rate futures rising sharply and longer-dated international bonds hit hardest. Brazil’s Treasury cancelled scheduled government bond auctions, while Bolsonaro’s refusal to concede added to investor uncertainty. Attention now turns to Lula’s finance minister appointment and fiscal discipline signals, as public debt exceeds 82 percent of GDP. Investors seek a credible plan to stabilize debt, with Lula’s team targeting a 1.3 percent budget surplus by 2030.