In the weeks leading up to the election’s runoff-stage between far-right Jair Bolsonaro and center-left Fernando Haddad, financial markets were in a frenzy as Mr. Bolsonaro enjoyed a comfortable lead in the polls. However, on the Monday following the election, the stock market actually went down – as did the Brazilian Real.
Why, you ask? Well, because the bets made on the former Army captain’s win had already turned a profit – and many investors decided to cash in on their winnings. From now on, the stock market will follow the markets’ reactions to the...
