Markets tumble on Lula’s election victory in Brazil
The benchmark stock index plummeted 14% as investors soured on the country’s economic prospects. Markets tumble on Lula’s election victory in Brazil Brazil’s currency suffered its worst daily fall this century and its benchmark stock index plummeted 14% as investors soured on the country’s economic prospects following President Luiz Inácio Lula da Silva’s reelection. During his third term, Brazil’s budget deficit expanded to more than 8% of GDP as government spending soared and overall growth cooled, driving surging debt levels. While the political challenge against Lula’s victory appears to have subsided for now — the party of opposition leader Flávio Bolsonaro, who said the vote was rigged, conceded the election and US President Donald Trump signaled he would not intervene — Brasília is nonetheless staring at a fiscal reckoning. “Attention now shifts to Lula’s economic team and fiscal…
