Stocks and exchange traded funds tied to the Brazilian market tracked higher on Monday afternoon as the country's president, Jair Bolsonaro, pushed the divided nation into a run-off in its election against leftist opponent Luiz Inacio Lula da Silva.
Brazil engages in a two-round arrangement for its presidential elections. For the first part, many different candidates face off against one another. Once all the votes are all tallied, a candidate with more than 50% of the votes wins the election. If that doesn't happen, then the top two leading candidates go head-to-head for a run-off vote.
In response to the news, shares of the iShares MSCI Brazil ETF ( NYSEARCA: EWZ ) and iShares MSCI Brazil Small-Cap ETF ( NASDAQ: EWZS ) popped 9.1% and 8.1% respectively.
Moreover, the Bovespa Index, which is Brazil’s benchmark index, with 84 of the largest market cap stocks, climbed by 4.5% . Other popular Brazilian stocks that have found themselves well into the green include shares of ( ABEV ) +8.5% , ( BAK ) +8% , ( BSBR ) +9.1% , ( NYSE: PBR ) +11.6% , ( NYSE: VALE ) +6.5% , ( ELP ) +9.5% , ( BBD ) +10% , as well as others.
In broader financial news, major market averages jump out ahead on Monday as the move in cash to bonds is pushing rates down further.
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Brazil’s presidential election heats up, pushing related stocks and ETFs higher