By Bruno Federowski
SAO PAULO, Dec 13Brazilian stocks and currencies
rose on Tuesday on hopes that lawmakers would swiftly approve a
key austerity measure later in the day.
The Senate began final debate on a constitutional amendment
limiting growth of public spending, a crucial step in President
Michel Temer's efforts to curb public debt.
The Senate is expected to approve the spending ceiling by a
wide margin, though leftist opponents of the austerity measure
have sought to delay the vote as long as possible.
The real strengthened 0.7 percent, outperforming all of its
Latin American peers.
The country's benchmark Bovespa stock index rose 0.9
percent, with shares of Kroton SA the biggest
Analysts with JPMorgan Securities increase their
recommendation on the stock to "overweight," saying a 24 percent
underperformance versus the benchmark index over the past six
months might be overdone.
Other Latin American markets were steady as traders remained
cautious ahead of the U.S. Federal Reserve policy decision due
The Fed is widely expected to raise interest rates and many
traders said the hike is fully priced in, but there are doubts
over whether it will send a strong signal that additional
increases are to come.
Key Latin American stock indexes and currencies at 1510 GMT:
Stock indexes daily % YTD %
MSCI Emerging Markets 877.64 0.62 9.83
MSCI LatAm 2340.70 0.71 27.02
Brazil Bovespa 59582.71 0.68 37.45
Mexico IPC 46922.96 0.02 9.18
Chile IPSA 4244.58 0.05 15.34
Chile IGPA 21207.58 -0.01 16.84
Argentina MerVal 17177.75 0.11 47.13
Colombia IGBC 9897.98 0.08 15.80
Venezuela IBC 36444.54 0.26 149.82
Currencies daily % YTD %
Brazil real 3.3220 0.69 18.81
Mexico peso 20.2740 -0.28 -15.01
Chile peso 649 0.03 9.35
Colombia peso 2984 0.17 6.21
Peru sol 3.397 0.09 0.50
Argentina peso (interbank) 16.0200 0.09 -18.96
Argentina peso (parallel) 16.35 -0.06 -12.72
(Reporting by Brunno Federowski; Editing by Meredith Mazzilli)