Changes in US stocks | Brazil's election results frightened the market's listing in the US, and Brazilian assets plummeted

The Zhitong Finance App learned that on Monday, Brazilian companies listed on the US stock market plummeted. Petrobras (PBR.US) fell nearly 17%, Itaú Unión Banco (ITUB.US) fell more than 20%, Bradsco Bank-Preferred (BBD.US) fell more than 28%, Nu Holdings (NU.US) fell more than 20%, XP Inc (XP.US) fell more than 52%, and MercadoLibre (MELI.US) fell more than 11%. According to the news, according to data from Brazil's High Electoral Court, current left-wing President Lula defeated Senator Flavio Bosonaro with 51.8% to 48.2% of the vote in the second round of the presidential election on Sunday, winning an unprecedented fourth term.

Previously, the market generally bet that Bolsonaro, which is more pro-market, will win the election and push for economic reforms. Since the first round of voting, the Brazilian stock market has surged by nearly 7%, and the real has appreciated by nearly 5%. Morgan Stanley said that the Brazilian stock market is expected to fall by 20%-30%, with large differences in decline. Additionally, the USD/BRL exchange rate will test 5.60 and could reach 6.00 if Brazil's fiscal concerns intensify.