EWZS Overview

ETF Performance Overview: On Monday, the ETF with the highest volume included Pagseguro Digital, which dropped 2.8% with over 5 million shares traded, and Stoneco, down 1.7% with more than 2.5 million shares exchanged.

Top Performer: Sigma Lithium was the standout performer of the day, increasing by approximately 8.6%.

Brazil's Interest Rate Hike: Brazil's central bank is expected to raise interest rates for the first time in two years, increasing the benchmark Selic by 25 basis points to 10.75% due to strong economic activity and rising inflation projections.

Economic Context: Unlike the U.S., which recently cut rates, Brazil's economy shows resilience against high borrowing costs, supported by increased public spending and low unemployment, leading to concerns about fiscal responsibility and inflation exceeding targets through 2027.

Market Overview: Wall Street experienced a subdued week with slight declines in major indices, while mortgage rates fell to their lowest in over a year, boosting homebuyer purchasing power amid expectations of Fed interest rate cuts.

ETF Highlights: Notable ETFs included ProShares Short Ether Strategy ETF (SETH) and United States Natural Gas Fund LP (UNG), both showing significant gains due to market shifts and positive jobless claims data alleviating recession fears.