Brazilian Assets Slump as Traders Wait for Lula’s Cabinet Picks

Largest ETF tracking Brazilian equities down 2% in premarket
Narrow margin signals Lula might take more moderate approach

Luiz Inacio Lula da Silva, Brazil's president-elect, center, poses for a photograph after winning the runoff presidential election in Sao Paulo, Brazil, on Sunday, Oct. 30, 2022. Lula won election as Brazil’s president in a dramatic comeback for the left-wing politician who was languishing in a jail cell just three years ago on corruption charges.Photographer: Tuane Fernandes/Bloomberg

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By Vinicius Andrade and Netty Idayu Ismail

October 31, 2022 at 12:50 AM UTC

Updated on

October 31, 2022 at 12:22 PM UTC

This article is for subscribers only.

Brazilian assets fell Monday as investors awaited more details on Luiz Inacio Lula da Silva’s plans for Latin America’s largest economy after he won the presidential runoff election.

The Brazilian real weakened as much as about 2% against the US dollar before trimming losses to 0.8% at 9:16 a.m. local time. In US premarket trading, the $5.5 billion US-listed iShares MSCI Brazil ETF, the largest exchange-traded fund tracking Brazilian stocks, fell 2% and Petroleo Brasileiro SA’s US-traded shares slumped 6%.