Brazil's Lula wins historic presidential election; Bolsonaro reportedly refuses to concede
It's the first time since Brazil returned to direct elections in 1989 that a candidate has won the final runoff after losing in the first round.
Key points
- Luiz Inácio Lula da Silva won Brazil's presidential runoff with 51.8% of valid votes to Flávio Bolsonaro's 48.2%, according to the Superior Electoral Court.
- Bolsonaro refused to concede and said he would seek annulment of the result, according to Reuters.
- The iShares MSCI Brazil ETF fell nearly 20% in overnight trading after Lula's win before paring losses.
Luiz Inácio Lula da Silva has won an unprecedented fourth term as Brazil's president, beating Senator Flávio Bolsonaro in a runoff that split the country almost evenly. Lula took 51.8% of valid votes to Bolsonaro's 48.2%, according to the Superior Electoral Court, with nearly all ballots counted on Sunday.
The result is historic: it is the first time since Brazil returned to direct elections in 1989 that a candidate has won the final runoff after losing in the first round. The 80-year-old leftist had trailed in the first round.
Bolsonaro disputes the outcome
Bolsonaro refused to concede defeat and said he would seek the annulment of the outcome, Reuters reported. He also called a ruling by Supreme Court Justice Cristiano Zanin to extend voting by two hours "unacceptable," according to the report.
The election process was marked by allegations of voter suppression. Lula's campaign reported suspended public transportation in key areas, prompting the court to extend voting by two hours. Bolsonaro's campaign had also requested an extension, citing heavy rains that shut polling stations in the south, a right-wing stronghold.
unacceptable
— Bolsonaro, per Reuters
Economic challenges and market reaction
Lula is set to govern from 2027 to 2030. He will face a Congress in which Bolsonaro's Liberal Party holds the largest bench in decades, and substantial public debt that he must stabilize.
Gross debt reached 82.9% of GDP in August, the highest since March 2021, according to the Central Bank of Brazil. The iShares MSCI Brazil ETF (EWZ) plunged nearly 20% in overnight trading after Lula's win, before paring losses to last down 18%.
Analysts had expected Brazilian assets to rally before the results, with Chris Turner, Global Head of Markets and Regional Head of Research for UK & CEE at ING, forecasting gains in currency and bond markets based on Bolsonaro's fiscal austerity and deregulation.
