Premarket movers: Brazilian ADRs surge, Leslie’s plunges

Itaú Unibanco will acquire NeoSpace A.I. Technologies, a Brazilian AI startup, for $589m. NeoSpace's models use the bank's data for applications in financial management, credit, CRM, and fraud prevention. The deal aims to enhance Itaú's generative AI assistant, 'ia.i,' and tailor customer solutions. NeoSpace will operate independently, with payment in installments over five years, pending regulatory approvals.

Petrobras lost $24.2B in market value after Lula's election win, with shares falling 7.4% in reais and 15.1% in dollars. Common (PETR3) and preferred (PETR4) shares dropped 6.81% and 8.18% respectively. The decline erased about 56% of recent gains, according to B3 data.

Petrobras shares fell 13.99% to $22.50 in New York, with preferred shares down 15.43% to $19.90, amid Brazil's Ibovespa index dropping 13.88% and the dollar rising 8.79% against the real. Oil funds USO and BNO also declined 1.95% and 1.30%, respectively. The drop was driven by political concerns following Brazil's election outcome, with Petrobras being state-controlled.

Ambev S.A. (ABEV) shares fell 15.5% after Luiz Inácio Lula da Silva won Brazil's presidential election, surprising investors who favored Bolsonaro. The win may increase spending and regulation, hurting Brazil's currency and bonds, which could impact Ambev's earnings in USD terms. The company reports Q3 earnings on Oct. 29.

Luiz Inácio Lula da Silva won Brazil's presidential runoff with 51.8% of the vote, defeating Flávio Bolsonaro. Prediction markets favored Bolsonaro, but traditional polls showed a tight race. Post-election, Brazil-linked stocks and ETFs, including EWZ, Itau Unibanco, and Petrobras, declined significantly.

Petroleo Brasileiro SA Petrobras ADR (PBR, PBRA) fell 16.2% after Lula's re-election. Lula's policies include fuel price controls and increased production, which may impact Petrobras' strategy and investor sentiment.