Brazilian Stocks ETF Plunges 19% in US After Lula Reelection

The EWZ, a US-traded fund tracking Brazilian stocks, plunged 19% in after-hours trading on Sunday (25) following the confirmation of President Luiz Inácio Lula da Silva's reelection. The fund had closed Friday up 1.77%. Brazil's stock market does not operate on Sundays, so the latest official data is from Friday's close, when the Ibovespa rose 0.47% to 205,083 points and the commercial dollar fell 0.90% to R$4.9930. Pre-election trading was influenced by a Datafolha poll showing a technical tie and new inflation data. The IPCA-15, a preliminary inflation gauge, rose 0.32% in October, below market expectations, following a 0.70% increase in September. Oil prices also climbed on geopolitical tensions and larger-than-expected US inventory draws, with Brent up 3.45% to US$117.08.