Brazil’s presidential election heats up, pushing related stocks and ETFs higher

Oct. 03, 2022 1:32 PM ETiShares MSCI Brazil Capped ETF (EWZ), EWZS, PBR, VALEBBD, ABEV, ELP, BAK, BSBRBy: Jason Capul, SA News Editor28 Comments

Map and Flag of Brasil

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Stocks and exchange traded funds tied to the Brazilian market tracked higher on Monday afternoon as the country's president, Jair Bolsonaro, pushed the divided nation into a run-off in its election against leftist opponent Luiz Inacio Lula da Silva.

Brazil engages in a two-round arrangement for its presidential elections. For the first part, many different candidates face off against one another. Once all the votes are all tallied, a candidate with more than 50% of the votes wins the election. If that doesn't happen, then the top two leading candidates go head-to-head for a run-off vote.

In response to the news, shares of the iShares MSCI Brazil ETF (NYSEARCA:EWZ) and iShares MSCI Brazil Small-Cap ETF (NASDAQ:EWZS) popped 9.1% and 8.1% respectively.

Moreover, the Bovespa Index, which is Brazil’s benchmark index, with 84 of the largest market cap stocks, climbed by 4.5%. Other popular Brazilian stocks that have found themselves well into the green include shares of (ABEV) +8.5%, (BAK) +8%, (BSBR) +9.1%, (NYSE:PBR) +11.6%, (NYSE:VALE) +6.5%, (ELP) +9.5%, (BBD) +10%, as well as others.

In broader financial news, major market averages jump out ahead on Monday as the move in cash to bonds is pushing rates down further.

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