A shock in Brazil sends stocks plunging, while neoclouds take another hit

This is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.Hello, this is Leonie Kidd with today's edition of Morning Squawk.Two shocks - one busy morning. The early election result in Brazil has sparked an overnight sell-off in the country's assets.While Elon Musk has stepped into the neocloud debate with a stark warning that these beaten-up stocks face a "guppy-level death."Futures are clinging on to small gains, but only just. Happening now: Dramatic ComebackLuiz Inácio Lula da Silva has won an unprecedented fourth term as Brazil's president, in a dramatic comeback from a first-round vote that saw him trailing rival Senator Flávio Bolsonaro.Bolsonaro has refused to concede defeat, saying he would seek the annulment of the outcome, Reuters reported. He also said a ruling by Supreme Court Justice Cristiano Zanin to extend voting for two hours was "unacceptable," according to the report.Instant reaction: The iShares MSCI Brazil ETF (EWZ) fell over 20% overnight on the results, which could signal the biggest one-day drop in the ETF's history. Brazilian Real November futures fell 10% in Asian trading. Stocks in freefall: U.S.-listed shares of Br...