Brazil ETF Tumbles on News of Campos Plane Crash

Shares of the iShares MSCI Brazil Capped ETF (NYSEArca: EWZ), the largest ETF tracking Latin America’s largest economy, slumped in midday trading after various international news agencies reported presidential candidate Eduardo Campos was aboard a plane that crashed in Santos, Brazil. GloboNews, a local news agency, reported Campos was killed in the crash.

“A police official in Santos said there were “certainly” fatalities in the crash, but could not say how many or provide any additional information,” reports Reuters.

Underscoring President Dilma Rousseff’s tenuous grasp on power and Brazilians’ dissatisfaction with her performance, EWZ immediately slid on heavy volume following news Campos’ death. EWZ is off 0.5% on volume that is already 77% above the daily average

The ProShares UltraShort MSCI Brazil Capped (NYSEArca: BZQ) and the Direxion Daily Brazil 3x Bear Shares (NYSEArca: BRZS) each popped after the news. Volume in BZQ, a double-leveraged bearish play on Brazilian stocks, is about 30% above the daily average.

Campos was running third in polls behind Rousseff Senator Aecio Neves. Campos’ running mate, Marina Silva, was not on board the plane, according to Reuters.