Brazil's financial markets plunged after President Lula da Silva unexpectedly won re-election. Brazilian equity ETFs (EWZ) dropped as much as 26%, the Brazilian Real lost about 10% against the USD, and the domestic stock index, Ibovespa, fell around 10% at open. Markets were even temporarily halted for 30 minutes due to extreme volatility. Prior to the election, many investors had bet on Flávio Bolsonaro’s victory, expecting the new government to implement spending cuts and more business-friendly policies. But the outcome defied expectations, prompting investors to sell off both stocks and the Real amid concerns over Brazil’s fiscal policy and public debt.