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Markets punish Lula's re-election as fiscal doubts resurface

27 October 2026 at 01:31
Brazil's real and bonds fell sharply on the first trading day after Luiz Inácio Lula da Silva's re-election to a fourth term, with the São Paulo stock exchange triggering an automatic trading halt. Investors fear widening fiscal deficits as Lula faces a Congress tilted toward the opposition.

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