Trump’s Defense of Bolsonaro: Potential Impact on Brazil’s Market Stability

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“RT @realDonaldTrump Brazil is doing a terrible thing on their treatment of former President Jair Bolsonaro. I have watched, as has the World, as they have done nothing but come after him, day after day, night after night, month after month, year after year! He is not guilty of anything, except having fought for THE PEOPLE. I have gotten to know Jair Bolsonaro, and he was a strong Leader, who truly loved his Country — Also, a very tough negotiator on TRADE. His Election was very close and now, he is leading in the Polls. This is nothing more, or less, than an attack on a Political Opponent — Something I know much about! It happened to me, times 10, and now our Country is the “HOTTEST” in the World! The Great People of Brazil will not stand for what they are doing to their former President. I’ll be watching the WITCH HUNT of Jair Bolsonaro, his family, and thousands of his supporters, very closely. The only Trial that should be happening is a Trial by the Voters of Brazil — It’s called an Election. LEAVE BOLSONARO ALONE!”

How Will Trump’s Statement Affect the Stock Market?

This latest post has the potential to affect the stock market. That’s because Donald Trump’s social media post defending Jair Bolsonaro could lead to increased volatility in the iShares MSCI Brazil ETF as investors react to potential political instability in Brazil. Trump’s comments may influence investor sentiment, causing fluctuations in the ETF’s price due to concerns about Brazil’s political climate and its impact on economic policies. Additionally, Trump’s support for Bolsonaro might embolden Bolsonaro’s supporters, potentially leading to increased market activity and uncertainty.

Here are some of the stocks that might be affected:
iShares MSCI Brazil ETF ((EWZ)).