Brazil’s main share index closed sharply lower in the first session after Luiz Inácio Lula da Silva’s reelection. Trading was temporarily halted as the selloff deepened. The commercial dollar rose to 5.40 reais, while the benchmark ended down 13.88 percent, marking a turbulent adjustment in both equity and currency markets.
Brazil’s Ibovespa, the main share index on the B3 exchange, closed 26 October down 13.88 percent at 176,608.23 points. It was the first trading session after President Luiz Inácio Lula da Silva’s reelection. The market opened under heavy selling pressure, and the exchange temporarily interrupted trading through its circuit-breaker mechanism.[1], [2]
Trading later resumed. During the session the benchmark ranged between 205,088.74 points and 169,516.43 points, with turnover of 76.9 billion reais. Rebecca Nossig, an equity strategist at financial services company Nomad, described the pause as time for traders to absorb information and reassess risk during the sharp volatility.[1]
The commercial dollar ended the day at 5.40 reais, up 8.25 percent. Shares did not move uniformly: Suzano rose 10.08 percent and Embraer gained 8.89 percent, while Magazine Luiza fell 58.23 percent. Vale gained 4.01 percent and Klabin rose 3.24 percent. Investors were focused on the election result; Lula won 50.7 percent of the vote after trailing Flávio Bolsonaro in the first round.[1]
