Benzinga on $EWZ (Oct 26, 2026)
The speaker leans toward staying away from EWZ after Brazil's surprise election upset drove a sharp decline described as a simultaneous repricing of equities, the currency, interest rates and political risk; he gives no reason of his own and phrases the stance tentatively.
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Unrest scripts Europe. What are they saying about this?
Brazil is crashing 25 to 27% in pre-market trading this morning because of a major election upset in Brazil. President Louise Anasio Lula Dilva unexpectedly won re-elections on the defeating Flavio Balsson whom investors heavily favored.
Here's what's driving their collapse. Election shock. Lula won 51.8 to 48.2 2 investor positioned aggressively for a balsinero victory and more businessfriendly fiscal policies.
Brazil real futures are down more than 10% because EWZ trades in US dollars. Currency weakness compounds the decline in Brazilian stocks. Investors worry Lulu continue government spending without sufficient debt reduction.
Massive position on lending. EWZ had rallied sharply this year in anticipation of political tra traders are rushing to exit those bets. That's a recorded one-day decline for the EWZ.
This isn't simply investors selling Brazilian companies. It's a simultaneous repricing of equities, the currency, interest rates, and political risks. Uh, so I guess we're going to stay away from it, right?
EWZ down 30.
A lot of big losers today. Ultrashort Brazil ETF is up 790.