Brazil's markets plunge after Lula's surprise fourth-term win

Brazil's financial markets plunged after left-wing President Luiz Inácio Lula da Silva unexpectedly won a fourth term, triggering investor concerns over the country's high debt levels. The surprise victory, with a margin of over four million votes, reversed the first-round lead of right-wing challenger Flávio Bolsonaro. The Sao Paulo stock exchange is expected to open with double-digit losses, while index funds on the Bovespa fell up to 25 percent and the Real dropped over eight percent against the Dollar. Markets had rallied after the first round on hopes of a business-friendly Bolsonaro government, with the Bovespa surpassing 200,000 points for the first time. Under Lula, state debt has reached nearly 83 percent of GDP, with the World Bank warning it could hit 100 percent. Investors now await the appointment of a new finance minister, while the EU welcomed Lula's win as positive for trade and climate.