India, Oct. 26 -- Brazilian stocks and currency faced selling pressure on Monday, October 26 following the win of President Luiz Inacio Lula da Silva in the re-election. He beat right-wing Senator Flavio Bolsonaro in the runoff. Major Brazilian companies like Petrobras, Itau Unibanco and Banco Bradesco saw declines in US premarket trading as investors reconsidered the country's economic future.

The Superior Electoral Court said that Lula received 51.79% of votes while Flavio Bolsonaro got 48.21%. This outcome surprised market predictions of a change in government and a move toward stricter fiscal policies.

Early trading reports showed that US-listed Petrobras shares dropped 22%. Itau Unibanco and Banco Bradesco were among the banking st...