Brazilian financial markets fell sharply after President Luiz Inácio Lula da Silva won re-election, reversing gains made before the vote. Investors had positioned for a win by his opponent, Jair Bolsonaro, whom they viewed as more willing to tackle the budget deficit. The EU welcomed Lula’s victory as a boost for the EU-Mercosur deal.
WHO:Brazilian financial markets
WHAT:Brazilian financial markets fell sharply after Lula won re-election.
WHEN:Reported Oct 26, 2026 at 10:42 AM ET
WHERE:Brazil
WHY:Investors had positioned for Bolsonaro to win, viewing him as more willing to tackle the budget deficit; Lula’s victory reversed that expectation.
Reporting from 8 identified publishers across this event arc.
