Mercado Libre shares slide 10.89% after Lula's Brazil election win

Brazilian assets plunged after Luiz Inácio Lula da Silva's surprise re-election victory over Flavio Bolsonaro, with the EWZ Brazil ETF dropping 26.74% and the real losing over 10% in futures trading before Monday's market open. The selloff forced investors to unwind positions built on expectations of a Bolsonaro win, which had driven the Ibovespa up nearly 7% and the real up 5% since the first round. Banks led losses, with Bradesco down about 30%, while Petrobras fell 22% on intervention fears. Mercado Libre shares dropped 10.89% to $1,613, as Brazil accounts for 52.6% of its revenue. Analysts warn fiscal concerns over Brazil's 82% debt-to-GDP ratio could keep interest rates elevated, with markets awaiting Lula's economic team appointments for clarity.