The iShares MSCI Brazil Capped ETF (EWZ), a heavily-traded US ETF that tracks Brazilian stocks, crashed more than 13 percent in the premarket Thursday on the back of an emerging political scandal.
Brazilian newspaper O Globo reported late Wednesday that Brazilian President Michel Temer gave his blessing to an attempt to pay a potential witness to remain silent in the country’s biggest-ever graft probe.
O Globo’s report, which three sources familiar with the matter said was accurate, threatened to pull
Brazilian equities have surged over the past year, with the EWZ rising more than 45 percent in the period, as investors cheered
“Now the fear is that
Rousseff was removed Aug. 31 amid a massive corruption scandal and an economic crisis that crippled Latin America’s largest country.
Brazil had been an economic stalwart in the region just a few years before Rousseff’s impeachment, buoyed by surging oil prices. But the collapse
—Reuters contributed to this report.