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Brazilian shares tumble as Rousseff impeachment is annulled

Brazil's President Dilma Rousseff
Mario Tama | Getty Images

Brazilian shares traded sharply lower Monday after the acting speaker of the country's lower house annulled President Dilma Rousseff's impeachment process and called for a new vote in the chamber.

The iShares MSCI Brazil Capped ETF (EWZ) fell 1.7 percent on Monday. U.S.-listed shares of Petrobras, Brazil's state-run oil company, dropped about 7 percent, while Vale SA, a Brazilian mining firm, saw its stock slide 9.6 percent.

Over the past 12 months, the EWZ has fallen more than 25 percent.

EWZ in past year

Source: FactSet

Brazil turmoil: Driving force behind Dilma impeachment suspended

Acting Speaker Waldir Maranhao said there were procedural flaws in the April 17 vote in the chamber that accepted impeachment charges against Rousseff.

In a news release, Maranhao said the impeachment process should be returned by the Senate so that the lower house can vote again.

It remained unclear whether his decision could be overruled by the Supreme Court, the Senate or a majority in the house.

The full Senate had been expected to vote to put Rousseff on trial on Wednesday, which would immediately suspend her for the duration of a trial that could last six months. During that period, Vice President Michel Temer would replace her as acting president.

— Reuters contributed to this report.