Brazil Markets Brace for Rout on Lula’s Improbable Election Win

Luiz Inácio Lula da Silva has won the Brazil runoff election, securing a fourth term as president. This victory came despite prediction markets giving Flávio Bolsonaro over 80% odds of winning following the first round. Consequently, traders are bracing for steep losses across Brazilian markets on Monday, as investors generally preferred the right-wing candidate. Lula's stunning comeback defies expectations and the support Bolsonaro received from other candidates during the historic presidential race in Brazil.