# Brazil's markets sink to 2026 lows on fears over Lula's policies

> Brazilian assets sold off on November 3, with the real closing at R$5.48 per dollar, its highest since late December. The Ibovespa fell 1.42% and entered a bear market after losing 20.82% from its October high. Investors reacted to proposals from economist André Lara Resende and PT members to cut the Selic rate sharply.

- Date: 2026-11-04 · published 2026-11-04T12:08:17.796Z
- Category: macro · region Brazil · magnitude medium
- Page: https://feedsoft.ai/events/79614-brazil-s-markets-sink-to-2026-lows-on-fears-over-lula-s-policies
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A sharply weaker real and fears over central bank independence raise the cost of imported feed ingredients for Brazil and can boost Brazilian export competitiveness for soy and corn.

## Read by commodity

- USDBRL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2024-06-25 | [Lula’s spending plans turn heat on Brazilian markets](https://feedsoft.ai/events/29989-lula-s-spending-plans-turn-heat-on-brazilian-markets.md) | +3.4% | +3.1% |
| USDBRL | 2025-06-26 | [Political tension over financial tax bill weighs on Brazilian markets](https://feedsoft.ai/events/24423-political-tension-over-financial-tax-bill-weighs-on-brazilian-markets.md) | -2.3% | -0.7% |
| USDBRL | 2026-10-26 | [Brazil’s real sinks after Lula’s re-election victory \| Financial Markets News \| Al Jazeera](https://feedsoft.ai/events/17283-brazil-s-real-sinks-after-lula-s-re-election-victory-financial-markets-news-al.md) | +7.6% | — |
| USDBRL | 2023-02-11 | [Clash Over Brazil’s Inflation Target Is Having an Impact on Its Markets](https://feedsoft.ai/events/37528-clash-over-brazil-s-inflation-target-is-having-an-impact-on-its-markets.md) | -1.4% | -0.3% |
| USDBRL | 2021-02-09 | [Brazil's real leads Latam FX losses on fiscal concerns - Markets - Business Recorder](https://feedsoft.ai/events/48852-brazil-s-real-leads-latam-fx-losses-on-fiscal-concerns-markets-business-recorder.md) | +1.2% | +9.3% |

## Sources

- valorinternational.globo.com: https://valorinternational.globo.com/markets/news/2026/11/04/brazils-markets-sink-to-2026-lows-on-fears-over-lulas-policies.ghtml

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.