$IBZL (+1,86 %)

The ETF follows suit.

Impact on the Stock Market

Experience shows that the reaction of the financial markets (particularly the benchmark Ibovespa index) and the local currency (the real) to Brazilian elections depends on several key factors:

Composition of the National Congress: For investors and bond markets, the congressional election is often just as crucial as the presidency. A fragmented parliament or a strong counterweight in Congress (such as the conservative centrist parties of the so-called Centrão) is often perceived by the markets as a check that makes it more difficult to pursue more radical economic policies unilaterally.

Fiscal policy and budget discipline: The biggest source of uncertainty for investors is Brazil’s national debt and compliance with budget rules. Signs of spending discipline and tax reforms usually lead to relief in the markets and a stronger real, while fears of expansive spending cause risk premiums to rise.

Monetary policy and interest rate trends: Since the Brazilian central bank (Banco Central do Brasil) responds to inflation and currency risks with high interest rates, the stock markets are particularly pricing in how the election results will affect future monetary policy and, consequently, the borrowing and investment costs for Brazilian companies.

Sectoral Reactions: State-affiliated companies (such as $PETR3 (+0,73 %) or $BBAS14 do Brasil) generally react most strongly to changes in government, while commodity- and export-oriented companies (e.g., mining and agriculture) are more heavily influenced by global demand and exchange rates

.

$IBZL (+1,86 %)

The planned association agreement between the EU and the Mercosur states (Brazil, Argentina, Paraguay, Uruguay) aims to create one of the largest free trade areas in the world. For Brazil, the largest economy in Latin America, this agreement offers not only short-term trade effects, but also long-term strategic opportunities to modernize and diversify its economy.

The most obvious advantage for Brazil is the reduction of tariffs and non-tariff trade barriers. The EU is one of Brazil's most important trading partners.

Tariff exemption: The agreement provides for the elimination of tariffs on over 90% of traded goods over a period of 10 to 15 years.

Competitive advantages in the agricultural sector: Brazil is an agricultural giant. The agreement would significantly improve access to the lucrative European market for key Brazilian products:

Immediate duty-free access: for products such as orange juice, instant coffee and fruit.

Improved quotas: Significant duty-free or duty-reduced quotas will be established for sensitive products such as beef, poultry, sugar and ethanol.

Elimination of export costs: The elimination of customs duties will make Brazilian products in Europe more competitive in terms of price compared to competitors from other regions.

Re-industrialization and access to technology

An often overlooked but decisive advantage for Brazil is the cheaper import of goods that are necessary for its own industrial base.

Cheaper primary products: Brazil imports machinery, chemicals, pharmaceutical products and vehicles partly from the EU. The elimination of customs duties on these imports reduces production costs for Brazilian industry.

Technology transfer: Easier access to European high-tech and mechanical engineering can increase the productivity of the Brazilian economy and drive forward modernization (re-industrialization).

Integration into global value chains: Harmonized standards will make it easier for Brazilian companies to feed parts and services into global supply chains.

Increase in foreign direct investment (FDI)

The agreement goes far beyond pure trade in goods and includes services, public procurement and investment protection.

Legal certainty: The agreement creates a stable legal framework. This reduces the risk for European investors and makes Brazil more attractive for long-term capital.

Infrastructure and services: European companies could invest more in Brazilian infrastructure projects (energy, transport, telecommunications), accelerating the country's modernization.

Services sector: Access to the Brazilian services market (e.g. maritime services, finance) is being opened up, which can increase efficiency in Brazil through competition.

For Brazil, the Mercosur-EU agreement represents a historic lever to free the economy from the "commodity trap". While the agricultural sector would see the most immediate gains, the long-term benefits lie in the reduction of production costs for industry, the inflow of investment capital and geopolitical risk diversification.

It offers the opportunity to make the Brazilian economy more competitive, more productive and more integrated into the Western economic area.

@TAHT

@SAUgut777

@Testo-Investor

@jagermeister

@Jo_Wolf

The iShares MSCI Brazil UCITS ETF

$IBZL (+1,86 %)

tracks the MSCI Brazil Index. The MSCI Brazil Index provides access to the largest and highest-volume companies in the Brazilian equity market.

The TER (total expense ratio) of the ETF is 0.74% p.a.. The ETF replicates the performance of the index through full replication (purchase of all index components). The dividend income in the ETF is distributed to investors. distributed to investors (quarterly).

The iShares MSCI Brazil UCITS ETF (Dist) has a fund volume of fund volume of 262 million euros. The ETF was launched in Ireland on November 18, 2005

Weight of the largest 10 positions 58.58%

out of a total of 49

Nu Holdings

Vale SA

Petróleo Brasileiro SA

Itaú Unibanco Holding SA

Petróleo Brasileiro SA

WEG SA

Banco Bradesco SA

B3 SA-Brasil, Bolsa, Balcão

Ambev SA

Itausa SA

$NU (+9,28 %)

$VALE3 (-0,73 %)

$PETR4 (-0,49 %)

$WEGE3T

$BBDC3

$ABEV3T

$ITSA3T

For investors Brazilian equities are currently not very popular with investors.

They have only invested 2.3 billion euros in the seven Brazil ETFs on offer. In contrast, the seven largest DAX ETFs have 15.6 billion euros.

However, Brazilian equities are currently offering very high dividend yields.

Active ETF Trader

😜

Few ETFs are what for me because performance is not in the range of my expectations.

But active trader can also get his return in ETFs.

Bib still positive on Brazil and buy again after interest rates.

Market is just 5-10% hot run worldwide

Stock market months September/ October to >60. % historically in the red.

I am enthusiastic about the Brazilian market and see potential.

Dividend payout