The reelection of current Brazilian President Luiz Inácio “Lula” da Silva, who defeated Flávio Bolsonaro in the October 25 runoff, triggered a schism in Brazil’s financial market on Monday. 

The EWZ, a Wall Street exchange-traded fund that groups the most important mid- and large-cap companies on the Brazilian stock exchange, plummeted 24%.

Large-cap stocks are showing losses that easily exceed double digits. 

The most representative cases were state-run oil company Petrobras (-15%), banks Itaú (-22%) and Bradesco (-30%), as well as NU Holding, dropping 21%. 

The drop was such that the São Paulo Stock Exchange decided to suspend trading for 30 minutes following a decline of more than 10% in the Bovespa, the stock index that groups the 100 most important companies listed on the Brazilian........

© Buenos Aires Herald