By Bruno Federowski
SAO PAULO, Dec 5 The Brazilian real strengthened
on Monday on trader relief that mass weekend demonstrations
refrained from directly targeting President Michel Temer.
Demonstrators protested across Brazil on Sunday to denounce
corruption and a congressional vote seen as an attempt to
curtail sweeping graft investigations.
Some investors had feared the weekend protests would take
aim at Temer, whose approval rates remain near record lows,
potentially hampering his administration's efforts to gather
lawmaker support for austerity measures.
"Protesters can demonstrate against Congress. As long as
they don't demonstrate against the government, the market will
remain calm," said Thiago Castellan, a trader with Renascença
The Brazilian real strengthened 0.5 percent after
weakening 1.7 percent last week. Other Latin American currencies
were mixed, with the Colombian peso rising 0.8 percent on
the back of higher crude prices.
Brazilian stocks seesawed as a drop in financial
shares helped offset a two-day rally in shares of
Braskem SA, Latin America's largest petrochemical
The stock reached a record high on Monday after it said on
Friday it is in advanced talks with authorities in Brazil and
the United States for a leniency agreement related to a massive
Analysts at JPMorgan Securities upgraded their
recommendation on U.S.-listed shares of Braskem to "overweight"
from "neutral," citing the leniency accord negotiations.
Wider emerging markets largely shrugged off political
uncertainty in Italy after its prime minister resigned following
a crushing defeat in a referendum over constitutional reform.
Currencies such as the Polish zloty and Czech crown
that have the closest trade ties to the euro zone
initially fell on the news but later pared back losses.
Key Latin American stock indexes and currencies at 1500 GMT:
Stock indexes daily % YTD %
MSCI Emerging Markets 854.70 0.19 7.42
MSCI LatAm 2261.05 0.57 22.87
Brazil Bovespa 60443.61 0.21 39.43
Mexico IPC 44926.82 0.83 4.54
Chile IPSA 4207.26 0.1 14.32
Chile IGPA 21009.17 0.09 15.74
Argentina MerVal 17000.84 0.31 45.62
Colombia IGBC 9774.24 0.5 14.35
Venezuela IBC 38563.85 0.21 164.35
Currencies daily % YTD %
Brazil real 3.4536 0.50 14.29
Mexico peso 20.6250 0.07 -16.46
Chile peso 668.15 0.43 6.22
Colombia peso 3058.91 0.82 3.61
Peru sol 3.42 -0.09 -0.18
Argentina peso (interbank) 15.9450 0.03 -18.58
Argentina peso (parallel) 16.29 0.37 -12.40
(Reporting by Bruno Federowski; Editing by Bill Trott)