Why iShares MSCI Brazil ETF (EWZ) fell 1.77%
iShares MSCI Brazil ETF (EWZ) fell 1.77% on September 25, 2026 — Brazil CPI beat spooks EM assets ahead of election.
What happened
Brazil's mid-September consumer inflation came in hotter than forecast, adding pressure ahead of a tightly contested election that has already roiled sentiment.
Why it moved
Hotter inflation strengthens the case for the Central Bank to extend its tightening cycle, raising real rates and compressing multiples on Brazil equities; election uncertainty compounds the selloff as investors price…
Why it matters
Part of the EM Rotation narrative—when developed-market growth stumbles and central banks hold rates high, emerging-market currencies and equities suffer from both higher real yields abroad and domestically tighter…
What would break the thesis
If the BCB signals a pause in tightening or election outcome removes policy tail risk, the inflation print loses its sting and Brazil risk assets can stabilize.