Brazil’s Stock Market Crashes After Lula’s Upset Victory

Brazil's stock market crashed after Lula da Silva defeated Flávio Bolsonaro in a presidential election upset that prediction markets had priced at 80% for Bolsonaro. The iShares Brazil ETF fell as much as 26%, while the dollar jumped as much as 12% against the real. The sharp repricing of a widely mispriced political outcome is a reminder for crypto traders that prediction-market odds can be badly wrong, and that emerging-market volatility can spill into risk assets.