Brazilian ADRs plummet after Lula's surprise election win

By Reuters News

** US-listed shares of Brazilian companies slide premarket

** President Luiz Inacio Lula da Silva wins historic fourth term, in shock result that defied polls, precedent and global anti-incumbent sentiment

** Senator Flavio Bolsonaro, son of former president Jair Bolsonaro who had won the first round of election earlier this month, refuses to concede

** Analysts and markets bet on Bolsonaro's victory, pricing in reforms as Brazil reels under deteriorating public finances and higher interest rates

** Shares of oil giant Petrobras PETR3.SA, tumble 20%

** Banks such as Itau Unibanco ITUB3.SA, down 28.5%, Banco Bradesco BBDC3.SA, down 26.8% and Nu NU.N down 24%

** Latin America-based e-commerce firm Mercadolibre MELI.O sheds 10.3%

** IShares MSCI Brazil ETF EWZ.P tanks 26%

** "Lula's surprise win will dash hopes for reforms that would improve public finances and strengthen growth prospects," says William Jackson, chief EM economist at Capital Economics

** Interest-rate cuts at two meetings this year do not seem likely anymore as higher fiscal risks and weaker real can weigh - Jackson

** Benchmark Ibovespa .BVSP index, which marked its biggest one-day jump since March 2020 on October 5, up over 27% YTD

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