# Lula Wins in Brazil, Weighing on Argentine Assets

Quick Take · News · Published October 26, 2026 · By [Anthony Asuaje](https://walkeranthony.com/about/), Walker Strategies
Canonical URL: https://walkeranthony.com/news/lula-wins-in-brazil-weighing-on-argentine-assets/

Lula’s surprise victory in the Brazilian runoff election caused shares of Mercado Libre to tumble by as much as 15% on Wall Street and has put upward pressure on Argentina’s country risk—a metric that had already climbed from 600 basis points to 707. The market, which had cheered under Bolsonaro, is now reacting negatively to Lula: Argentine assets, having rallied following the first round of voting, are now shedding some of those gains.

Because Mercado Libre has key operations in Brazil, a political landscape there that is less business-friendly has a direct impact on the company. For Argentine bonds and stocks, the pressure is also tangible: a less favorable regional environment heightens risk perception and could push Argentina’s country risk even higher in the coming days.

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