Brazilian President Dilma Rousseff lost a crucial vote in the lower house of Congress, reports Joe Leahy of the Financial Times.
Investors are dipping back into emerging markets, but some analysts warn the appearance of a recovery overlooks the warning signs.
The political and economic turmoil engulfing Brazil, the world's seventh-largest economy, is weighing on global growth as well.
There are more than a few potential pitfalls that could make investors eager to "sell in May" this year.
Dilma Rousseff scrambled on Wednesday to hold together her crumbling coalition by negotiating key government posts with remaining allies, aides said.
Investors are betting that an impeachment of President Dilma Rousseff will change the country's trajectory.
Marcos Casarin, head of LatAm macro research at Oxford Economics, talks about the damage to Dilma Rousseff as a result of PMDB quitting.
Analysts are divided as to how Brazil's economy and political situation might fare if President Dilma Rousseff is impeached.
Petrobras posted its biggest-ever quarterly loss on Monday after booking a large writedown for oil fields and other assets as oil prices slumped.
Peter Attard Montalto, emerging markets economist at Nomura, tells CNBC that investors are willing and waiting for a chance to put money into Brazil.
The move by the Brazilian president to appoint her predecessor and personal mentor as her chief of staff has been blocked by a federal judge, according to media reports.
Daniel Tenengauzer, head of global FX & EM strategy at RBC Capital Markets, says the regime in Brazil needs to change for the economy to improve.
Brazil's ex-president will accept a position in his successor's cabinet, according to a national newspaper.
Jimena Blanco, head of Americas at Verisk Maplecroft, says investor perceptions of Brazil may change if Dilma Rousseff's government is removed.
Hundreds of thousands of Brazilians flooded the streets on Sunday in record protests calling for President Dilma Rousseff's removal.
The slump in oil prices is frightening stock traders, but the impact on geopolitical stability may prove to be more alarming this year.
Tom Elliott, international investment strategist at DeVere Group, says if Brazil can get some stability in commodity prices and lose some political risk, it'll start to look cheap for investors.
Could South Africa be the next major emerging market to lose its investment grade rating?
Brazil launched impeachment proceedings against President Dilma Rousseff on Wednesday, as the country's economic and political turmoil worsens.
Dilma Rousseff of Brazil announced Friday that she was cutting her salary by 10%, reducing the size of her cabinet and slashing thousands of coveted jobs, the NYT reports.