Ibovespa plunges 13.88% on Lula re-election, fiscal concerns mount

Brazil's Ibovespa index fell 13.88% on Monday, its steepest drop since 2020, as President Lula's re-election defied market expectations and raised concerns over fiscal policy. The market's reaction signals investor anxiety over potential government spending and debt trajectory. The sustainability of the selloff and any policy response from the government remain uncertain.

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