Brazil’s Ibovespa stock index plunged more than 16 percent to below 172,000 on Monday after President Lula defeated Flávio Bolsonaro in the second round of the presidential election.
The decline is driven by concerns over increased public spending, continued budget deficits and rising government debt. Brazil is South America’s largest economy.
Petrobras fell 16 percent, Itaú more than 15.5 percent and Banco do Brasil more than 31 percent. At the same time, Vale rose more than 8 percent ahead of its report and WEG advanced 4 percent after the announcement of a planned acquisition of L&S Electrics’ PCS business.
