$EWZ

Brazil's country risk surged 26% on Monday, with the 5-year CDS rising to 151.7 points, the highest since June 2025. The increase followed Lula's election victory, which investors associate with higher government spending and potential fiscal risks. The Ibovespa index fell 17%, and the dollar rose 12% against the real. Morgan Stanley expects further widening of the CDS and bond spreads, with the dollar potentially testing 6.00 reais if fiscal dominance concerns arise.

The iShares MSCI Brazil ETF (EWZ) dropped 27% in premarket trading after President Lula da Silva won Brazil's election, surprising markets. Investors exited Brazilian assets, including Petrobras (PBR) and banking stocks, due to Lula's fiscal policies and Bolsonaro's refusal to concede. The selloff was Brazil-specific, with broader U.S. markets unchanged.

Brazilian stocks rose 1.57% and the real strengthened 0.58% against the dollar on 20 October 2026, with the Ibovespa index reaching 208,295.98 points. The dollar's fall was attributed to global dollar weakness and positioning ahead of Brazil's presidential runoff on 25 October. The EWZ, a US-listed fund tracking Brazilian shares, gained 2.4% to US$42.94. Materials led sector gains, while consumer discretionary lagged.

Brazil's Ibovespa index surged 7.7% to a record 206,911.89 points after Flávio Bolsonaro led the presidential first round. The real strengthened, boosting US-listed Brazilian assets like Petrobras (PBR) and Itaú (ITUB). Investors anticipate fiscal tightening under a potential Bolsonaro administration, but risks remain ahead of the runoff.

The Nasdaq 100 hit a record high, while the iShares MSCI Brazil ETF (EWZ) surged 13.5% following Brazil's election results. The S&P 500 gained 0.5%, and the 10-year Treasury yield rose to 5.33%. Nu Holdings (NU) rose 13% amid the Brazil rally.

The iShares MSCI Brazil ETF (EWZ) surged 13.32% on Monday after right-wing senator Flávio Bolsonaro outperformed in Brazil's election, according to Barron's and Reuters. Stanley Druckenmiller's Duquesne Family Office held significant Brazil-related positions as of June 2026, with ordinary shares and call options valued at $118.5M and $145.9M, respectively. Duquesne reduced other Latin American holdings, including selling its entire MercadoLibre (MELI) position.

iShares MSCI Brazil ETF (EWZ) rose over 10% after Flávio Bolsonaro led Brazil's presidential election. EWZ offers a 2.87% dividend yield, 62% payout ratio, and 13.77% 3-year dividend growth. It trades 26.4% above intrinsic value, with a GF Score of 74/100. Six gurus hold EWZ, with three increasing stakes.

The iShares MSCI Brazil ETF (EWZ) surged over 10% at the open Monday after Flávio Bolsonaro led in Brazil's presidential election. This shift from incumbent Lula da Silva impacted the ETF's performance.