The iShares MSCI Brazil Index ETF EWZ and other Brazilian stocks are down sharply in pre-market trading following news that President Dilma Rousseff won a second term on Sunday over conservative Aécio Neves.
Investors are likely worried that her re-election will only serve to deepen the economic downturn for Brazil, which has been hit hard by falling commodity prices and slowing growth. The Brazilian Real weakened by nearly 2.7 percent after the results were announced.
Shares in EWZ were down 9 percent in pre-market trade at $37.70.
Petroleo Brasileiro Petrobras SA PBR, a large Brazilian oil company, was down 16.1 percent at $10.93.
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