The EWZ exchange-traded fund, which tracks Brazilian stocks traded abroad, fell 19 percent in after-hours trading on Sunday evening at 21:37, after President Luiz Inácio Lula da Silva (PT) was re-elected in the presidential runoff. Lula won 51.78 percent of the vote against 48.22 percent for Flávio Bolsonaro (PL), with 99.98 percent of ballots counted.
The Brazilian market was closed on Sunday, so the latest local readings are from the close on Friday the 23rd. On that day the EWZ rose 1.77 percent, while the Ibovespa gained 0.47 percent to 205,083 points. The US dollar commercial rate fell 0.90 percent to 4.9930 reais.
A tight race before the vote
The last session before the runoff came after a Datafolha poll showed Lula and Flávio Bolsonaro in a technical tie. The result reversed that picture, with Lula ahead by about three points in the count.
The Ibovespa had gained 10.06 percent so far this month and 27.28 percent year to date. Over the week it slipped 0.17 percent.
Inflation and oil in the background
Mid-month inflation data also landed in the final week. The IPCA-15 index rose 0.32 percent in October, below market expectations, after a 0.70 percent increase in September.
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Oil prices were rising at the same time. Brent crude climbed 3.45 percent to 117.08 dollars a barrel, while WTI rose 4.02 percent to 103.45 dollars.
