October 26, 2026

Lula da Silva was re-elected as president of Brazil after defeating Flávio Bolsonaro in the runoff

International

In Brazil’s presidential runoff, Workers' Party (PT) candidate Luiz Inácio Lula da Silva defeated Flávio Bolsonaro, representing the Liberal Party, by a margin of more than 3 percentage points. With this narrow victory, he managed to reverse his loss from the first round and was re-elected as president of Brazil. Against this backdrop, the Bovespa stock index fell by 17% at the market opening.

In the United States, the focus this week will be on the Federal Reserve’s (Fed) monetary policy meeting; the benchmark interest rate is expected to remain unchanged at its current level of 4.00%. In the Eurozone, third-quarter Gross Domestic Product (GDP) figures will be released, with an estimated annual growth of 1.1%. Meanwhile, the European Central Bank (ECB) is set to make a new decision on interest rates, which are projected to remain at their current level of 2.65%.

Meanwhile, major U.S. stock indices closed lower on Friday. The S&P 500 fell 0.5%, the Nasdaq dropped 0.2%, and the Dow Jones declined 1.2%. Nevertheless, year-to-date, these indices show gains of 11.4%, 11.7%, and 8.6%, respectively.

U.S. Treasury yields showed mixed movements on Friday. While the yield on the 1-year Treasury note fell from 4.41% to 4.39%, the yields on the 3-year and 10-year notes rose slightly—from 4.72% to 4.75% and from 4.96% to 5.00%, respectively.

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