Brazilian markets swing after Lula reelection; dollar falls

cnnbrasil.com.br (Portuguese) —

Brazilian markets showed volatility on Tuesday following Monday's sharp selloff triggered by President Luiz Inácio Lula da Silva's reelection, with the Ibovespa index fluctuating between gains and losses while the dollar fell against the real. The Ibovespa initially rose 1% before slipping 0.20% to 176,200 points, a day after plunging 13.88% in its worst drop since 2020, which activated a circuit breaker. The dollar fell 1.61% to R$5.3267, following Monday's 8.36% surge, its largest daily gain in 23 years, as investors had bet on challenger Flávio Bolsonaro. Citigroup and BCA Research downgraded Brazilian assets, citing deteriorated risk-reward profiles amid fiscal discipline concerns. Markets await comments from central bank chief Gabriel Galípolo and signals on Lula's economic team, while global focus remains on tech earnings and central bank meetings.


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