On Sunday, Peru voted in a polarizing second-round presidential run-off where both candidates were unpalatable to large portions of the population (for details, see last week’s situation report).

Pedro Castillo currently holds a narrow lead over Keiko Fujimori, 50.255% to 49.745%, with nearly 97% of the vote counted.

It looks as though the Left will emerge victorious in Peru’s clash of political extremes, and markets have already reacted to the new political reality.