Brazil Stocks Eye Best Day Since 2020 After Bolsonaro Upset - iShares MSCI Brazil ETF (ARCA:EWZ)

Brazil’s election remains days away, but markets are trading as if a new president were already settled. The iShares MSCI Brazil ETF (EWZ) jumped more than 14% in early trading Monday after right-wing Senator Flávio Bolsonaro finished ahead of President Luiz Inácio Lula da Silva in Sunday’s first round. If the move holds, it would be EWZ’s best day since March 13, 2020. In São Paulo, the Ibovespa surged 9% to a record high. Flávio Bolsonaro won 47.03% of valid votes versus Lula’s 45.16%; the runoff is scheduled for Oct. 25. The rally spread to Latin American stocks, including MercadoLibre and DLocal, alongside Argentine banks.