🚨Past 48 hours have been BRUTAL for Brazil markets after President Lula’s Win: 1. Brazil’s stock market index crashed 17.6% on Monday, worst single day crash after 2020 COVID news. 2. Shortly after the market opened, circuit breaker was triggered to halt trading, first time since 2020. 3. Brazil’s currency REAL plunged 11% against the US dollar, the worst one-day drop since 1999. 4. EWZ, a US-listed ETF tracking Brazilian equities, crashed over 26%, marking its largest intraday decline ever. 5. Yield on 10 Year government bonds surged by 300 points in a single day from 12.9% to 16%. Before Sunday's result, Brazil was one of the best-performing global markets this year, gaining 38% after pulling in $5B in foreign capital. Now, investors are dumping assets over fears of Lula’s expensive "tax and spend" welfare promises. Markets are panicking that these new policies will explode public spending which is already at 83% of GDP. With interest rates already at 13.75%, all hopes are on Lula to deliver fiscal policies that can stop the panic.