---
symbol: "EWZ"
name: "iShares MSCI Brazil ETF"
date: 2026-08-21
change_pct: 3.062360801781721
direction: "up"
event_type: "other"
url: "https://perplo.app/why/EWZ/2026-08-21"
updated_at: 2026-08-21T19:06:32.844Z
---

# Why iShares MSCI Brazil ETF (EWZ) rose 3.06% on August 21, 2026

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.

## Sources

- [Brazil's Lula and US Pres. Trump held phone call on Friday.  ](https://investinglive.com/news/brazil-s-lula-us-trump-held-phone-call-on-friday/) — ForexLive
- [Brazil to keep fiscal framework, spending restraint under new Lula term, minister says](https://www.investing.com/news/economy-news/brazil-to-keep-fiscal-framework-spending-restraint-under-new-lula-term-minister-says-4869500) — Investing.com
- [Brazil to maintain fiscal framework if Lula wins reelection](https://www.investing.com/news/economy-news/brazil-to-maintain-fiscal-framework-if-lula-wins-reelection-93CH-4869488) — Investing.com

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