Brazil’s stock market opened with a very negative trend on Monday, following Lula da Silva’s victory in the second round of the presidential election. Although part of the trend is due to the negative sentiment that characterizes the day in international markets, after the release of less encouraging economic data in China, there are specific factors in Brazil influencing the domestic stock market.

As expected, after trading some derivative instruments traded in Asia and in the pre-market of the New York Stock Exchange, the Brazilian stock market opened with big drops: in the first minutes of trading, iBovespa Index is down 2%.

One of the actions in which the most expressive droplets accumulate is that of Petrobras, which Bonds down 6.9%. This decline would be the result of the belief that Lula da Silva could interrupt the privatization plans that Bolsonaro was being implemented, not only in Petrobras but also in other Brazilian state-owned companies. Another stock that saw a strong fall was Banco de Brasil, which was down 4.5%.

The Brazilian stock market opened sharply lower on Monday.

On Friday, the Brazilian stock market fell 0.4%, passing a very positive day in international markets, including the New York Stock Exchange. Uncertainty over the election outcome, which was surely the strongest of all time, prevented investors from taking big trades in one direction or another, and then the session ended slightly lower.