“In his ruling, Justice Luis Roberto Barroso said the new probe was warranted because Brazil’s top prosecutor, Rodrigo Janot, had found ‘strong indications’ of crimes, given that the decree signed by Temer answered part of the demands made by logistics firm Rodrimar SA,” according to Reuters.
Related: 5 Brazil ETFs to Take Advantage of Upside Potential
Earlier this year, former Brazilian President Luiz Inacio Lula da Silva was convicted on corruption charges. It was corruption allegations that were the undoing of former President Dilma Rousseff and ultimately forced her impeachment. The current administration is being stung by the new corruption investigation. Rousseff was selected by Lula to be his successor and she presided over one of Brazil’s worst recessions.
Traders who are betting on a quick turnaround could look to the two times leveraged ProShares Ultra MSCI Brazil (NYSEArca: UBR) or the three times leveraged Direxion Daily Brazil Bull 3x Shares (NYSEArca: BRZU). On Wednesday, BRZU was the best-performing US-listed ETF on an intraday basis.
For more information on the Brazilian markets, visit our Brazil category.