Brazil's real and stocks sink after Lula's re-election

Dollar against the real

5.60 reais per US$

The US dollar jumped 12 per cent against the real on Monday, to 5.60 reais.

Trading in São Paulo was halted for 30 minutes before stocks fell sharply. Lula won 51.8 per cent to 48.2 per cent, and Flavio Bolsonaro said he cannot recognize the result.

Why it matters

Investors fear looser spending: public debt already exceeds 82 per cent of GDP, and Lula's team aims for a budget surplus of about 1.3 per cent by 2030.