iShares MSCI Brazil Index (ETF) (NYSEARCA:EWZ)’s Latest News

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Dallas, Texas 02/27/2014 (FINANCIALSTRENDS) – Brazil based iShares MSCI Brazil Index (ETF)(NYSEARCA:EWZ) tracks the MSCI 25/50 Index. Through the month of February, Brazil has been in the throes of multiple economic movements. These include the soft manufacturing growth in the early days of the month. The country also saw a massive employment fall leading to different market forces.

Firstly, a look at the soft manufacturing growth rate in Brazil.

Brazil’s PMI edged close to the 50.8 mark in January. However, a spate of new orders pushed the index well past previous high, reporting 52.4.

Another side of this development was a drop in the rate of employment. The complication was high, because the drop was for the 10 continuous month.

iShares MSCI Brazil Index (ETF)(NYSEARCA:EWZ) has also been dependent on another new report Brazil had to pass through. This was the unemployment rate. Though there was in increase in the employment rates from 4.3% last year to 4.8% in January, it yet feel short of the benchmark indicated 5.1%. It also reported that the rate remained flat over the season. The result was that iShares MSCI Brazil Index (ETF)(NYSEARCA:EWZ) dropped considerably during the period.

In current weeks, as the central Bank has increased the benchmark rate of interest  by over 25 basis points, reporting at 10.75%, iShares MSCI Brazil Index (ETF)(NYSEARCA:EWZ) has remained flat.

Additionally, the key to Brazil’s rate increase has been an attempt to contain inflation. In 2013, the inflation rate was 5.9%, way higher than the previous target of 4.5%.

iShares MSCI Brazil Index (ETF)(NYSEARCA:EWZ) has managed to remain within the infra trading zone, following marginally better data for unemployment during the previous month. Nearly all of the country’s ETFs are influenced by the hike in bench mark rate by the central government.

The share has been trading below par in the current trading session at $40.37, a drop of over 0.03 and change % corresponding to -0.07.

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