Ibovespa falls 16 percent after circuit breaker as dollar rises 12 percent to R$ 5.60
First published Mon, Oct 26
Brazil's Ibovespa fell 16 percent after a circuit breaker halted trading, and the dollar rose as much as 12 percent to R$ 5.60, UOL reported. Retail and construction company shares dropped sharply on the exchange. The circuit breaker was triggered for the 24th time on the Brazilian exchange.123
The selloff followed the re-election of President Lula, with the market reacting with fiscal pessimism, Gazeta do Povo reported. InfoMoney described the 16 percent plunge as coming after Lula's re-election and the circuit breaker. Jornal Panorama Minas also reported the Ibovespa falling more than 16 percent and the dollar surging after the 2026 elections.456
Asset manager Asset1 said the dollar could test R$ 7 to make fiscal policy a concern for the political class, Valor Econômico reported. NeoFeed described the day after the election as a reality check between the Planalto palace and Faria Lima, the financial district.78
