Stanley Druckenmiller's Brazil Bet Appears To Pay Off After Election Shock. Brazil's Biggest ETF Soars 13% On The News
The ETF’s rise reflected a market-friendly election surprise, while Stanley Druckenmiller’s June Brazil position included $118.5 million in shares and $145.9 million in call options.
- On Monday, the iShares MSCI Brazil ETF surged 13% after first-round election results showed Flávio Bolsonaro leading with about 47% of votes, setting up a 25 October runoff against Lula, who held about 45%.
- Foreign investors interpreted the surprise election outcome as market-friendly, causing the US-listed Brazil ETF to jump about 10% in overnight trading, while Brazil's benchmark Selic rate remains fixed at 13.75%.
- Market attention shifts to today's 8:30 BRT BCB Focus report and 10:00 BRT S&P Global PMIs, as analysts weigh whether September's composite estimate of 48.5 indicates contraction in the dominant services sector.
- Friday's 2.63% gain has the Ibovespa index near 192,115 points, about 3.3% below the 52-week closing high of 198,657, leaving traders exposed to potential profit-taking today.
- Maintaining a 13.75% Selic rate preserves a ten percentage point carry over US yields; the central bank faces macro headwinds including a 1.2% decline in August industrial production.
38 Articles
38 Articles
The S&P Merval rises more than 3% and the bonds in dollars recover 1.3% on average. The indicator of JP Morgan yields to 614 basis points
Stanley Druckenmiller's Brazil Bet Appears To Pay Off After Election Shock. Brazil's Biggest ETF Soars 13% On The News
The post Stanley Druckenmiller’s Brazil Bet Appears To Pay Off After Election Shock. Brazil’s Biggest ETF Soars 13% On The News appeared first on 24/7 Wall St.. The iShares MSCI Brazil ETF (NYSEARCA:EWZ) rose 13.32% in Monday’s regular session and traded at $43.28 as of 11:03 AM ET this morning. Through this morning, the fund is up 17.54% over the past week, 37.53% year to date and 49.68% over the past year, according to WSJ. Election Upset Lift…
The result of the first round surprised against what the polls anticipated and led to a rapid revaluation of Brazilian assets; the real against the dollar is also strengthened
Petrobras shares jump 9.3% in the pre-opening of Wall Street, while large banks' securities jump more than 10%.
Coverage Details
Bias Distribution
- 62% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
