On Sunday, Brazilian President Dima Rouseff won reelection.
And as Business Insider’s Linette Lopez wrote following the result, Wall Street is not going to be thrilled with this outcome.
As Lopez wrote: “Over the last four years the country has taken a turn for the worse. Low commodity prices have hurt Brazilian exports, and so has a Chinese slow down. Inflation is high, and corporate profits are thin. This is a task that Wall Street analysts thought [Rouseff’s challenger] Neves was better suited for.”
And so while stocks in Brazil and the US don’t open for several hours, stocks are open in Asia, and the initial read on how investors are taking the news is terrible.
Near 10:20 pm ET, the ETF that tracks Brazil’s Ibovespa index listed in Tokyo was down over 7% overnight.
Here’s the chart showing the huge sell off in this ETF in early Monday trade in Tokyo.