Brazil’s President Luiz Inacio Lula da Silva won a fourth term by beating Flavio Bolsonaro in a runoff, and on Monday, October 26, 2026, congratulations came from African capitals, Moscow and Berlin. The result also jolted markets: Sao Paulo’s exchange briefly stopped trading after a steep fall, Brazil’s real weakened against the dollar, and raw sugar prices dropped.
- Key Point: Nigerian President Bola Ahmed Tinubu, Tanzanian President Samia Suluhu and Seychelles President Patrick Herminie congratulated Lula and stressed closer bilateral links and cooperation across the Global South.
- Key Point: Russian President Vladimir Putin praised Lula’s personal role in Brazil-Russia ties in a Kremlin telegram and wished him a happy 81st birthday; Dmitry Peskov said Moscow welcomed the election result.
- Key Point: The Ibovespa fell almost 17%, prompting a 30-minute halt; the dollar climbed 12% against the real, while raw sugar lost nearly 5%.
- Key Point: German Chancellor Friedrich Merz said he wanted to deepen the strategic partnership discussed at April consultations in Hanover, including defense and raw materials.
African and Russian congratulations
Tinubu, Nigeria’s leader, called Lula’s renewed mandate a chance to strengthen ties between their countries. He said he looked forward to broader cooperation and framed the relationship in Global South terms.
“As two leading nations of the Global South, we can promote economic integration and advance our shared interests in a rapidly changing global order.”
Tanzania’s Samia Suluhu offered congratulations and underlined the long friendship between Tanzania and Brazil.
“sincere congratulations”
“Tanzania values its longstanding friendship with Brazil, and looks forward to continue building on this foundation to further strengthen bilateral relations and deepen cooperation, for the mutual benefit of our two nations.”
Patrick Herminie, president of Seychelles, read the runoff as proof that Brazilians trusted Lula’s leadership. His office published remarks describing the victory as a tribute to Lula’s dedication to ordinary people. Herminie said Seychelles shared Lula’s priorities and wanted closer work on climate change, ocean protection and the Global South’s interests.
“a powerful affirmation of the trust the Brazilian people have placed in President Lula’s leadership” … “a testament to his lifelong commitment to the dignity and well-being of ordinary men and women” … “social justice, equality of opportunity, the protection of workers and the most vulnerable, and a model of development that places people at its center.”
In Moscow, Putin sent a telegram that the Kremlin published on Monday. He stressed Lula’s individual contribution to the two countries’ strategic partnership and noted that he is among the few world leaders who have worked with Lula through every presidential term since 2003. He also offered birthday greetings before Lula turned 81 on Tuesday. Peskov, speaking to reporters in Moscow earlier, said the Kremlin welcomed the re-election. Both nations belong to BRICS, and Brazil and Russia have kept warm relations during Lula’s governments.
“It is difficult to overstate your personal contribution to strengthening the strategic partnership between Brazil and Russia.”
DW, reporting from Rio de Janeiro, described the win as a historic political comeback: Lula had trailed after the first round, then defeated far-right rival Flavio Bolsonaro in the runoff. Bolsonaro rejected the result.
Stocks halted, currency and sugar fall
Sao Paulo’s bourse, the biggest in Latin America, suspended trading for half an hour on Monday. The benchmark Ibovespa had tumbled nearly 17% after the left-wing president defeated conservative Flavio Bolsonaro. The exchange said it used a 30-minute circuit breaker reserved for sharp market declines.
“periods of sharp market decline.”
The dollar rose 12% against Brazil’s currency, among the real’s largest single-day swings on record. Raw sugar, a key Brazilian export, dropped almost 5% as the exchange rate collapsed. Prediction markets had pointed to a Bolsonaro victory, but the right-wing senator would not concede and promised to contest the result, adding to investor uncertainty.
“Important for local financial markets will be how quickly Bolsonaro accepts the result, or at least allows the constitution to run its course.”
That was the view of Chris Turner, an ING strategist in London, who spoke to Reuters. Attention then shifted to Lula’s pick for finance minister, seen as a signal of his fiscal approach.
“The key signal for markets will be the next Lula administration’s commitment to fiscal discipline, starting with the appointment of a new finance minister in coming weeks.”
Graham Stock of RBC BlueBay Asset Management gave that assessment to Reuters.
Berlin seeks closer partnership
German Chancellor Friedrich Merz added his congratulations in a message on X. He referred to the April talks in Hanover, where the two governments agreed to intensify cooperation on defense and raw materials, among other areas. Merz said he wanted to continue that work.
“I look forward to further deepening the strategic partnership between Germany and Brazil together.”
The greetings from Africa, Russia and Germany suggest Lula begins his fourth term with wide diplomatic goodwill. The market slump and Bolsonaro’s refusal to accept defeat, however, mean political and economic tests will arrive at once. Investors will scrutinize the finance minister appointment for signs of fiscal discipline, while the government must manage uncertainty caused by the challenge to the result. Brazilian markets had been expected to face heavy selling on Monday after the win. How quickly the opposition and financial markets adjust may shape the opening phase of the new term.