Brazil’s ex-president Lula is out of jail, and everyone has an opinion

As he walked out of the jail that held him for 19 months on a bribery conviction, Lula raised a defiant fist in the air to the cheers of a crowd of supporters from his Workers Party who waved red flags and held “Free Lula” banners.

His release is expected to further polarize a country that elected far-right President Jair Bolsonaro last year in a vote that Lula said on Friday was “robbed” from his Workers Party, which governed the country from 2002 to 2016.

Investors were jolted by the prospect of Lula returning to the political stage and uniting opposition to the market-friendly government, although he is barred from running in upcoming elections.

Brazil’s currency and benchmark Bovespa stock index both fell 1.8% on Friday, weighed down first by a Supreme Court ruling paving the way for Lula’s release and deepening losses after the formal court order letting him go.

“This will strengthen the Workers Party, but also anti-Lulismo and that will strengthen Bolsonaro’s movement too,” said Lucas de Aragao at ARKO political risk consultancy in Brasilia.