Lula's Brazil win hits Ibex 35 and oil prices

Oil prices fell and Spain's Ibex 35 traded lower on Monday following Luiz Inácio Lula da Silva's victory in Brazil's presidential election, which penalized Spanish companies with significant exposure to the country. The Ibex 35 dropped about 0.25% to around 18,950 points, contrasting with gains in other European indices, as investors had priced in a win for right-wing candidate Jair Bolsonaro, seen as more favorable to private investment. Telefónica led losses with a decline exceeding 7.5%, followed by Banco Santander at 3.3% and Mapfre at 2.7%. Brazil accounts for roughly 28% of Telefónica's revenue via its Vivo subsidiary, about 15% of Santander's group EBITDA, and 25% of Mapfre's profit, with the anticipated fall of the Brazilian real and higher financing costs driving the sell-off.