Brazilian markets crash following Lula’s reelection. What’s the impact in Argentina?

The reelection of current Brazilian President Luiz Inácio “Lula” da Silva , who defeated Flávio Bolsonaro in the October 25 runoff, triggered a schism in Brazil’s financial market on Monday. The EWZ, a Wall Street exchange-traded fund that groups the most important mid- and large-cap companies on the Brazilian stock exchange, plummeted 24%. Large-cap stocks are showing losses that easily exceed double digits. The most representative cases were state-run oil company Petrobras (-15%), banks Itaú (-22%) and Bradesco (-30%), as well as NU Holding, dropping 21%. The drop was such that the São…