Lula meets finance chiefs after market turmoil over reelection

Brazilian President Luiz Inácio Lula da Silva met with Finance Minister Dario Durigan and Planning Minister Bruno Moretti on Monday following a severe market reaction to his reelection. The dollar surged 8.31% to R$5.406, while the Ibovespa index plunged up to 16%. Trading was temporarily halted on B3 after futures contracts fell 20% pre-market. The index later operated down 14.36%, marking the biggest drop since September 1998. Investors expressed concerns over fiscal policy and potential public spending increases, as Lula's victory defied expectations for Flávio Bolsonaro. The market turbulence could impact inflation and tax revenue if sustained. Discussions are underway for the next Finance Minister, with Piauí Governor Rafael Fonteles and Vice President Geraldo Alckmin as leading candidates.