Having lost the first round of Brazil’s presidential election to far right rival Flávio Bolsonaro, incumbent Luiz Inácio Lula da Silva spectacularly triumphed in the second. Jeremy Hurley asks: Why did the Brazil stock market tank after the election result, and will it recover? Tom: Basically, because the markets had been convinced that Flávio Bolsonaro was going to win and that after taking power he would implement a “chainsaw” style austerity programme inspired by Javier Milei’s government in Argentina, deal with Brazil’s budget deficit, and bring down interest rates.
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