- Optimism over a change in government has sent Brazilian stocks sharply higher this year, but that may have ended today on rumors former president Lula da Silva is set to accept a position in current president's Dilma Rousseff's government.
- Why? The move would shield Lula from prosecution by certain courts. His detention by police earlier this month ignited an 8.5% rally in the Bovespa on the hope that Rousseff's days in power were numbered. Today's news has the Bovespa lower by 4%.
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EWZ -5.5%, BBD -8.3%, ITUB -7.9%, BSBR -6.2%, VALE -5.9%, PBR -9%
- ETFs: EWZ, BRF, BRZU, EWZS, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
- Previously: Rousseff's days appear numbered (March 11)
- Previously: Brazil's Lula charged with money laundering (March 10)