Brazil’s real plunges 12% after Lula’s election win

Brazil's real fell 12 percent against the US dollar after Luiz Inacio Lula da Silva's unexpected re-election, while Bovespa stock index futures tumbled nearly 15 percent on Monday. The currency drop and stock decline reversed a rally driven by expectations of a Bolsonaro victory and tighter fiscal policy. Brazil's stock exchange halted trading for 30 minutes after the Bovespa fell 10 percent, triggering a circuit breaker. Lula faces rising public debt exceeding 82 percent of GDP, with investors watching his finance minister choice and fiscal plans. His team targets a budget surplus of 1.3 percent of GDP by 2030, though details on spending cuts remain unclear.