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Brazil Elections: Is Investor Confidence Beginning to Fade?

One of the most relevant events for emerging markets in recent sessions has been the outcome of Brazil’s presidential election. Following Lula da Silva’s victory in the second round, investor sentiment began to deteriorate noticeably. This can be observed in both the iShares MSCI Brazil ETF and the VanEck Brazil Small-Cap ETF, two important benchmarks for tracking the Brazilian equity market, both of which have posted declines of more than 15% at the start of the week.

Julian Pineda
Julian Pineda