Brazilian financial markets recorded their worst trading session in nearly three decades following the unexpected election victory of Luiz Inácio Lula da Silva, according to EL PAÍS. The country's stock exchange fell 15%, the Spanish outlet reported.
Vice President Geraldo Alckmin responded to the result, saying the administration would carry on with its work, EL PAÍS reported. The publication did not provide further details of his remarks.
The market turmoil extended to Spain. El Confidencial reported that Telefónica dropped 6.41% and Santander fell 3.09% in the wake of Lula's win, while Expansión noted that the Ibex 35 broke away from the rest of Europe because of the Brazil effect.
The head of Petrobras described the fall in the company's shares after the result as speculative, according to Yahoo. No further explanation from the company was included in the reporting.
The scale of the selloff — the worst session in almost 30 years, per EL PAÍS — underscores how closely investors were watching the Brazilian vote. The reports did not specify which companies or sectors beyond Petrobras, Telefónica and Santander were most affected, nor did they detail the trading date beyond the Monday publication.
Attention now turns to whether Brazilian equities steady in the coming sessions and whether Petrobras and other state-linked firms offer further responses to the market reaction.
