---
symbol: "EWZ"
name: "iShares MSCI Brazil ETF"
date: 2026-11-04
change_pct: -1.783613055056658
direction: "down"
event_type: "macro_print"
url: "https://perplo.app/why/EWZ/2026-11-04"
updated_at: 2026-11-04T02:06:55.014Z
---

# Why iShares MSCI Brazil ETF (EWZ) fell 1.78% on November 4, 2026

iShares MSCI Brazil ETF (EWZ) fell 1.78% on November 4, 2026 — Hotter Brazil inflation outlook raises rate-hike bets.

## What happened

Brazilian economists raised their inflation and interest-rate forecasts after Lula's reelection, and the Brazil ETF fell 1.8%.

## Why it moved

Higher inflation forecasts push up the rate path that investors use to value Brazilian equities, which lowers the present value of future earnings.

## Why it matters

Brazil's political swings are one of the reasons the EM Rotation trade is struggling, since the rotation was built on capital returning to emerging markets.

## What would break the thesis

Softer inflation prints or a central bank signaling a less hawkish path would ease the pressure on discount rates. The thesis would also weaken if political uncertainty keeps fueling expectations of higher rates.

## Sources

- [Brazil economists raise inflation, rate forecasts after Lula reelection](https://www.investing.com/news/economy-news/brazil-economists-raise-inflation-rate-forecasts-after-lula-reelection-4994810) — Investing.com

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