Brazil ETF soars after presidential vote
EWZ•An iShares ETF tracking Brazilian stocks rose to its highest since 2020 in London trading after Flavio Bolsonaro led the first round of Brazil’s presidential election with 47% of votes, ahead of Luiz Inacio Lula da Silva at 45%.
1. Election lifts Brazilian stocks
Brazil’s iShares stock ETF rose to its highest since 2020 in London trading after right-wing Senator Flavio Bolsonaro took the lead in Sunday’s first-round presidential vote. Bolsonaro received 47% of votes, beating polls, while President Luiz Inacio Lula da Silva received 45%; the two will face each other in a runoff.
2. Markets weigh runoff outcome
The article said Bolsonaro is seen as more business-friendly and that the ETF’s jump is likely to presage a broader rally on Monday. UBS said it sees significant upside of more than 40% in equities and local debt if fiscal reform advances. Aberdeen’s Viktor Szabo said markets expect Bolsonaro to win and that votes from the four eliminated candidates, who collectively secured around 8%, may favour him.
