BRASILE — Following the validation of the presidential runoff results by the electoral court confirming Luiz Inácio Lula da Silva's victory, political divisions and significant market turbulence have emerged across the country.
While several major political parties that supported the right-wing candidate at the runoff — including Podemos, Republicanos, and União Brasil — recognized Lula's victory and congratulated the re-elected head of state, distancing themselves from the senator's choice to contest the outcome, tensions persist. Similar stances were taken by the Social Democratic Party (PSD) and the Brazilian Social Democracy Party (PSDB), which had left their members free to choose, as well as the Brazilian Democratic Movement (MDB). Despite this institutional acceptance, the brother of Bolsonaro insisted on not recognizing the election.
The election result triggered a sharp reaction in financial markets. The São Paulo Stock Exchange (Bovespa) resumed trading after an initial suspension, with the benchmark index dropping significantly—losing up to 17% following the historic re-election of Lula, after a strong slump led to a 30-minute trading halt in the morning. Meanwhile, the Brazilian real plummeted by over 10% against the US dollar, with the exchange rate settling at 5.5750 reals per dollar after a 10.7% plunge.
International figures also weighed in on the political development, with leaders such as Dissanayake writing on their X profile to celebrate progress.
