The Brazilian markets have been among the best performers of 2016, with EWZ up 41.4% and EWZ 45.7% higher year-to-date, as traders speculated the new administration would better manage a growing budget deficit and pull the country out of its worst recession in a century.

“The market feels much more confident now,” Paulo Henrique Amantea, an analyst at Guide Investimentos, told Bloomberg. “The trend for stocks is positive.”

For instance, Morgan Stanley recently upgraded its outlook on Petroleo Brasileiro SA, the state-controlled producer that is trying to shake off a corruption scandal, reports Denyse Godoy for Bloomberg.

Related: Corruption Probe Plagues Brazil ETF

“Our overweight rating is driven by improved fundamentals and higher oil prices,” analysts at Morgan Stanley led by Bruno Montanari wrote in a note. “Asset valuations are likely to improve in a higher oil price environment.”

Petrobras makes up about 7.9% of EWZ’s underlying portfolio.

iShares MSCI Brazil Capped ETF

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