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Incumbent left-wing President Luiz Inacio Lula da Silva has won Brazil’s presidential runoff election, securing 51.7% of the vote against right-wing candidate Flavio Bolsonaro’s 48.2%. The victory marks a historic fourth term for Lula, following a tightly contested race that has triggered financial volatility and a legal dispute over the vote’s outcome.
Bolsonaro Refuses Concession as Party Accepts Result
Despite losing by more than four million votes, Flavio Bolsonaro has refused to concede, citing a two-hour extension of voting hours on election day. The extension was ordered by the electoral court due to public transport disruptions and severe weather conditions. Electoral officials maintained that the additional voting time did not alter the election outcome.
In a major break from its candidate, Bolsonaro’s Liberal Party recognized Lula’s victory. Liberal Party leader Valdemar Costa Neto confirmed in a statement that the party accepted the official results, even as it noted that raised questions should be clarified. Meanwhile, Bolsonaro announced on social media that federal police intercepted him and ordered him to surrender his passports under a travel ban issued by Supreme Court Justice Alexandre de Moraes.
In his victory address, Lula emphasized plans to tighten regulations on major technology platforms, pointing to alleged interference by Meta during the election campaign.
Financial Markets Shocked by Election Outcome
Financial markets reacted sharply to the election result on Monday. The Sao Paulo stock exchange’s benchmark Ibovespa index plunged nearly 17% shortly after opening, triggering a mandatory 30-minute circuit breaker to halt trading, as reported by Deutsche Welle.
The Brazilian real suffered a massive drop, with the US dollar rallying 12% against the currency in one of its largest single-day surges on record. Major corporate shares also experienced steep declines, with state energy firm Petrobras falling over 20% and banking giant Itau Unibanco dropping nearly 30%, while raw sugar export prices fell almost 5%.
Global Leaders Respond to Lula’s Win
World leaders reacted promptly to the election results. German Chancellor Friedrich Merz expressed his desire to deepen strategic ties between Germany and Brazil. Russian President Vladimir Putin sent a telegram praising Lula’s contributions to the bilateral partnership within the BRICS framework and wished him well ahead of his 81st birthday.
In the United States, President Donald Trump described the election mechanics as looking “terrible” and “corrupt,” specifically criticizing the voting time extension, while adding that he personally likes Lula and gets along with him. Official responses from the US State Department remained pending.
Other international leaders welcomed the outcome. French President Emmanuel Macron and Chinese Foreign Ministry spokesperson Guo Jiakun both emphasized strengthening strategic partnerships with Brazil. Spanish Prime Minister Pedro Sanchez called the victory evidence of a global progressive resurgence. Congratulations were also offered by several African heads of state, including Nigerian President Bola Ahmed Tinubu, Tanzanian President Samia Suluhu, and Seychelles President Patrick Herminie.
