Brazil country-specific exchange traded funds are bouncing on optimism that President Dilma Rousseff will finally be removed from office and that a new administration may steer the economy toward growth.
On Monday, the iShares MSCI Brazil Capped ETF (NYSEArca: EWZ) increased 2.9%, VanEck Vectors Brazil Small-Cap ETF (NYSEArca: BRF) rose 2.9% and iShares MSCI Brazil Small-Cap ETF (NYSEArca: EWZS) gained 2.3%.
Brazilian equities have been among the best performers among the emerging markets of 2016, with EWZ up 60.7%, BRF up 62.1% and EWZS up 67.0% year-to-date.
Brazilian markets strengthened on hopes that acting President Michel Temer, who will remain as the country’s leader if the Senate decides to impeach Rousseff, will be able to re-align the country’s finances and restore growth, reports Denyse Godoy for Bloomberg.
Rousseff appeared before Congress Monday to defend herself against accusations of budgetary mismanagement. She has been accused of tax peddling and the Rousseff administration has been associated with corruption.[related_stories]