Financial markets in the United States and Europe reacted immediately to the victory of leftist candidate Luiz Inácio Lula Da Silva in the second round of the Brazilian presidential elections over President Jair Bolsonaro.
Though favored to win, the Workers’ Party candidate’s victory sent Brazil’s EWZ ETF tumbling 5%, while Petrobras’ ADRs plunged nearly 10% in Monday’s NYSE premarket, according to local data from Infomoney.
Investor sentiment is geared towards an adjustment of portfolios in the face of possible scenarios related to greater government intervention in state-owned companies.
We still await further signals regarding the economic policy that Lula will follow and the names of those who will accompany him in guiding Brazil’s economy. A name that could appease the markets is that of former Central Bank president and finance minister, Henrique Meirelles.
However, according to what was expressed by Lula…
