Latin American Stocks Rally to 11-Year High on Record Inflows and Tariff Ruling

Global capital inflows into Latin American equities have reached a decade-high, driving the MSCI EM Latin America Index up over 20% in 2026 to an 11-year peak. This marks the region’s strongest annual start since 1991, fueled by US trade policy shifts and anticipation of local monetary easing. Momentum accelerated after the US Supreme Court overturned President Trump’s global tariffs on February 21, 2026. BlackRock’s iShares Latin America 40 ETF (ILF) attracted a record $1 billion in January, while the iShares MSCI Brazil ETF (EWZ) posted its strongest monthly inflows in over a decade. Investors are positioning for potential interest rate cuts in Brazil—where the benchmark Selic rate stands at 15%—and political realignments ahead of upcoming elections in Brazil and Colombia.