Why iShares MSCI Brazil ETF (EWZ) fell 2.80%
iShares MSCI Brazil ETF (EWZ) fell 2.80% on October 29, 2026 — Bolsonaro passport cancellation weighs on Brazil.
What happened
The Brazil ETF fell 2.5% after Brazilian federal police canceled Senator Flavio Bolsonaro's passports when he missed a deadline. The move reflects a fresh legal action against a Bolsonaro-linked political figure.
Why it moved
Legal pressure on a Bolsonaro-linked figure adds to Brazil's political-risk premium, which hits local equities and the currency.
Why it matters
Brazil is a key holding in the EM Rotation theme, where capital moves between emerging markets based on policy and risk appetite.
What would break the thesis
If the passport cancellation is reversed or the case is dismissed, the political-risk bid should fade. Escalation into broader legal action against the opposition, or fiscal stress from the new government, would extend…