June 8, 2017 / 5:27 PM / 2 months ago

EMERGING MARKETS-Brazil currency, stocks slip as electoral court trial prompts caution

    By Bruno Federowski
    SAO PAULO, June 8 (Reuters) - Brazil's stocks and currency
fell on Thursday in thin trading as investors remained cautious
over an electoral trial that could oust President Michel Temer.
    The majority of judges on Brazil's top electoral court (TSE)
argued to exclude testimony by executives from conglomerate
Odebrecht SA, potentially strengthening Temer's assertions that
his campaign received no illegal funding when he ran as former
leftist president Dilma Rousseff's running mate in 2014.

    The court is expected to rule by Friday on whether to annul
the election and unseat Temer. A final decision, however, could
take months if an unfavorable verdict is appealed by Temer to
the Supreme Court.
     Traders fear a protracted judicial process could delay
Temer's bid to cut pension spending and reform labor laws, seen
as critical to curb growth of public debt and shore up investor
trust.
    The benchmark Bovespa stock index fell 0.9 percent. 
    Cia Energética Paranaense stock was one of the
biggest decliners after the power utility confirmed plans to
raise funds through a sale of shares.
    The Brazilian real slipped 0.3 percent, and most
other Latin American currencies were narrowly mixed.
    
    Key Latin American stock indexes and currencies at 1640 GMT:
 Stock indexes                               daily %   YTD %
                                              change  change
                                   Latest             
 MSCI Emerging Markets              1018.10     0.23    17.8
 MSCI LatAm                         2544.00    -0.84     9.6
 Brazil Bovespa                    62617.00    -0.88    3.97
 Mexico IPC                        49121.57    -0.31    7.62
 Chile IPSA                         4855.60    -0.71   16.96
 Chile IGPA                        24349.95    -0.65   17.44
 Argentina MerVal                  22092.94    -0.56   30.59
 Colombia IGBC                     10749.27    -0.08    6.13
 Venezuela IBC                     94092.98    12.86  196.77
                                                            
 Currencies                                  daily %   YTD %
                                              change  change
                                                      
                                     Latest           
 Brazil real                         3.2809    -0.29   -0.97
 Mexico peso                        18.2140     0.03   13.89
 Chile peso                           665.8     0.48    0.74
 Colombia peso                       2917.8    -0.20    2.87
 Peru sol                             3.271    -0.03    4.37
 Argentina peso (interbank)         15.9875     0.08   -0.70
                                                      
 Argentina peso (parallel)             16.3     0.37    3.19
                                                      
 
 (Reporting by Bruno Federowski; Editing by W Simon)
  

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