“This was never going to be a smooth and orderly process, something which is now plain for all to see,” Nicholas Spiro, a partner at Lauressa Advisory Ltd., told Bloomberg. “The sharp improvement in sentiment towards Brazil has been an emotionally fueled ’anyone-but-Dilma’ rally that never looked convincing from the start.”
Edwin Gutierrez, the head of emerging-market sovereign debt at Aberdeen Asset Management, though, argues that the lower house chief’s decision could just be a temporary setback to impeach the President.
“The House can call as many votes as it wants,” Gutierrez said. “The result will be the same every time.”
Traders have raised Brazilian bets this year on speculation that a new administration could enact a number of austerity measures and reforms to stabilize the economy. Vice President Michel Temer was expected to take over temporarily and name a new cabinet.
For more information on the Brazil ETF market, visit our Brazil category.
iShares MSCI Brazil Capped ETF