Brazilian stocks surged after Flávio Bolsonaro secured 47% in the first election round, surprising markets. This result raised hopes for fiscal reforms, as Bolsonaro's advisers discussed a potential fiscal adjustment of 1.5% of GDP within 18 months. Brazil's high public debt and interest rates have kept equity risk premiums tied to fiscal confidence, so any credible policy shift could boost stocks, especially banks. However, some investors remain cautious, seeking proof that new policies will reduce Brazil's sovereign risk premium before fully committing.
The EWZ ETF, representing Brazilian stocks, has jumped 13.38% in one day on Pluang, reaching a price of USD 43.30. This strong move highlights the market's reaction to recent political developments. As of Oct 06, 2026 01:31 WIB, EWZ's market cap stands at $8.97 billion with a trading volume of nearly 60 million shares.
The iShares MSCI Brazil ETF (EWZ) surged 13% driven by positive election momentum favoring market-friendly policies. Over the past year, EWZ has outperformed the S&P 500, supported by a low valuation of 8.7 times P/E and a PEG ratio under 1.0. Its po...
Brazil's presidential election is highly contested between leftist Lula and right-wing Bolsonaro, with markets favoring Bolsonaro due to his promise of fiscal discipline. Bolsonaro's potential win could lead to a rally in Brazilian bonds, currency, a...
