Brazil ETF EWZ Drops 18% as Dollar Nears R$5.50 After Lula’s Reelection

Luiz Inácio Lula da Silva just won his reelection in Brazil, and the financial markets immediately hit the panic button. Financial analyst Rafael pointed out that the EWZ, the main exchange-traded fund for Brazilian stocks in the US, crashed by about 18 per cent in after-hours trading. While this doesn’t mean the local Brazilian stock market will drop by the same amount, it shows a sudden repricing of risk. At the same time, currency contracts traded overseas pushed the dollar up to 5.50 Brazilian Reais.

Source: DeFi Planet