Brazil's Ibovespa plunges 13.88% after Lula re-election, worst drop since 2020

Brazil's benchmark Ibovespa index fell 13.88% following Lula's re-election, marking the third-largest daily drop since the pandemic began. The selloff reflects investor concerns over fiscal policy continuity and potential interventionist measures. The magnitude of the move signals a sharp repricing of Brazilian risk assets, with implications for regional markets and EM sentiment.

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