Lula Secures Fourth Term in Brazil After Runoff Victory Over Bolsonaro

Luiz Inácio Lula da Silva defeated Senator Flávio Bolsonaro in Brazil's presidential runoff, receiving 51.8% of valid votes against Bolsonaro's 48.2%, according to the Superior Electoral Court. The outcome marks the first instance since the country restored direct elections in 1989 that a candidate has won the final round after losing in the first round.

Bolsonaro said he would seek to annul the election result and criticized a Supreme Court decision that extended voting hours by two hours as "unacceptable."

"The ruling to extend voting for two hours is unacceptable," Bolsonaro said, as reported by Reuters.

The vote count was completed on Sunday after the court ordered an additional two-hour voting period, citing reports of suspended public transportation and heavy rains that disrupted polling stations in some regions. Bolsonaro's campaign had also requested an extension, citing similar disruptions in the south.

Lula, now 80, is set to begin his term in 2027 and will face a Congress where Bolsonaro's Liberal Party holds the largest bloc in decades. Brazil's public debt has risen to 82.9% of GDP, the highest level since March 2021, according to the central bank.

Financial markets reacted sharply, with the iShares MSCI Brazil ETF falling nearly 20% in overnight trading before narrowing its losses. Analysts had previously expected a rally in Brazilian assets, citing Bolsonaro's fiscal policies.

On the same day, Serbia's long-standing leader Aleksandar Vučić conceded defeat in a parliamentary election, ending 14 years of rule.