The Brazilian stock market collapsed after the re-election of the incumbent president.In early trading on Monday, October 26, the Vespa index fell 17.3% to 169,516.4 points. The stock exchange stopped trading after the index fell by more than 10%. By 18:25 Moscow time, the decline had slowed to 15.33%. The Brazilian real fell more than 12% against the dollar at the lows. Brazil's sovereign debt also came under pressure, with long-term bonds suffering the most. Against the background of the market collapse, the Brazilian Ministry of Finance canceled the government bond tenders scheduled for October 27 and 29. What is the reason for the sale? Markets fell following the re-election of incumbent President Luiz Inacio Lula da Silva. Investors fear that he will not be able to contain a budget deficit approaching 10% of GDP. This may limit the scope of the interest rate reduction. In the second round Lula received 51.79% of the votes, while his opponent Flavio Bolsonaro received 48.21%. Many investors counted on Bolsonaro's victory and the tightening of fiscal policy. Read more The Brazilian stock market collapsed amid the results of the presidential elections.