Brazil ETF Dives 16% Premarket After Bribery Allegation Against President

By Victor Reklaitis Markets MarketWatch Pulse

The iShares MSCI Brazil Capped ETF plunged 16% Thursday in premarket action as the country's opposition lawmakers called for President Michel Temer to resign after a bribery allegation. Brazilian newspaper O Globo reported Wednesday that Temer encouraged a top businessman to buy the silence of a jailed former congressional leader, and the report has threatened to spark a new bout of political turmoil, a Wall Street Journal story said. Temer took office last year amid impeachment proceedings against former President Dilma Rousseff. The iShares fund is the largest U.S.-listed ETF tracking Brazilian stocks, and it has attracted nearly $6 billion in investor money.

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