Brazil ETF Jumps 14% as Flávio Bolsonaro Tops Round One
Brazil's main US-listed ETF, EWZ, gained 14% after Flávio Bolsonaro led round one. What drove it and what the 25 October runoff means for US investors. The post Brazil ETF Jumps 14% as Flávio Bolsonaro Tops Round One appeared first on The Rio Times .
Flávio Bolsonaro secured a victory in the first round of Brazil's presidential election, garnering 47.03% of the votes, compared to Lula's 45.16%. This result led to a significant surge in U.S.-listed Brazil funds and shares, with the iShares MSCI Brazil ETF (EWZ) jumping 14.0% in a week. Petrobras ADR gained 16.9%, while Vale ADR dipped 1.0%.
The dollar depreciated 4.2% against the Brazilian real between October 2 and 9, which boosted dollar returns on Brazilian assets. The election runoff is scheduled for October 25, with prediction markets favoring Flávio Bolsonaro with an 88% chance of winning, according to Polymarket and Kalshi. Fund managers anticipate tighter public spending and potential interest rate cuts under a Flávio Bolsonaro administration, which could further benefit Brazilian stocks and ease debt costs.
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