Why iShares MSCI Brazil ETF (EWZ) rose 3.06%
iShares MSCI Brazil ETF (EWZ) rose 3.06% on August 21, 2026 — Lula-Trump call signals Brazil-US policy thaw.
What happened
Brazil's Lula and President Trump held a phone call, signaling a potential thaw in bilateral relations after months of trade and political tension.
Why it moved
A diplomatic opening reduces the risk of new tariffs, sanctions, or escalated trade friction on Brazilian commodities and equities; improved tone de-risks EM positioning in Brazil and lifts sentiment for emerging market…
Why it matters
Part of the EM Rotation theme, where Brazil is a core commodity-and-growth play; reduced Trump-Lula tension removes a key overhang and allows the fiscal reform story (spending restraint mentioned by ministers) to drive…
What would break the thesis
If the call produces no concrete follow-up commitments and tensions re-escalate, or if Trump reverses course on Brazil trade policy, the relief trade unwinds quickly.