Brazil Markets Plunge With Bolsonaro Backing Son for Presidency

Brazilian markets slumped, with stocks seeing their worst day since 2021 and the currency tumbling about 2.5% after former President Jair Bolsonaro endorsed one of his sons as the right-wing’s name in presidential elections next October.

The real, which had quickly slid after a report from local website Metropoles on the backing earlier Friday, accelerated losses after Flavio Bolsonaro confirmed the news on X. The Ibovespa stock index fell 4.3%, while some swap-rate contracts — indicators of monetary policy expectations — surged more than 50 basis points as investors unwound bets the right-wing leader would back Sao Paulo Governor Tarcisio de Freitas in the race.