June 19, 2017 / 4:48 PM / a month ago

EMERGING MARKETS-Brazil stocks track commodities higher, political worries linger

4 Min Read

    By Bruno Federowski
    SAO PAULO, June 19 (Reuters) - Brazilian stocks rose on
Monday, supported by shares of miners and planemaker Embraer SA,
though lingering concerns that a political crisis could delay
structural reforms kept a lid on gains.
    Shares of miner Vale SA added the most points to
Brazil's benchmark Bovespa stock index, tracking iron
ore futures higher.
    Embraer SA was the biggest gainer on the Bovespa
as traders bet on fresh orders for the jetmaker at the start of
the Paris Airshow, the global aviation industry's biggest event.

    Still, concerns remained that a mounting political scandal
may further hamper the implementation of President Michel
Temer's reform agenda, curbing investor demand for higher-risk
Brazilian assets.
    Temer on Saturday pledged to sue billionaire businessman
Joesley Batista, the founder of meatpacker JBS SA, strongly
rebuffing his accusations that he led a corruption scheme in
which politicians squeezed high-profile executives for bribe. 
    Shares of JBS dropped 3.4 percent, leading losses
on the Bovespa index.
    The Brazilian real weakened as much as 0.8 percent
amid the political uncertainty before paring losses to around
0.2 percent.
    The Mexican peso also slipped as traders booked
gains from a recent rally that last week drove it to a
thirteen-month peak against the dollar, while the country's
S&P/BVM IPC stock index followed crude prices lower.
    Trading in Latin American markets was mostly thin, with
investors sticking to the sidelines as they awaited further
hints over the pace of U.S. interest rate increases over the
coming months.
    
    Key Latin American stock indexes and currencies at 1630 GMT:
    
 Stock indexes                      Latest        Daily     YTD
                                                    pct     pct
                                                 change  change
 MSCI Emerging Markets                1,011.38     0.82   16.33
 MSCI LatAm                           2,539.16      0.2    8.26
 Brazil Bovespa                      62,062.56     0.71    3.05
 Mexico S&P/BVM IPC                  49,000.47    -0.45    7.36
 Chile IPSA                           4,841.38     0.11   16.62
 Chile IGPA                          24,236.86      0.1   16.89
 Argentina MerVal                    21,626.81     1.57   27.83
 Colombia IGBC                       10,904.32     0.95    7.66
 Venezuela IBC                      118,905.77     1.48  275.04
                                                               
 Currencies                             Latest    Daily     YTD
                                                    pct     pct
                                                 change  change
 Brazil real                            3.2933    -0.21   -1.34
 Mexico peso                           17.9430    -0.18   15.61
 Chile peso                                661     0.45    1.47
 Colombia peso                        2,975.48    -0.12    0.87
 Peru sol                                3.267     0.15    4.50
 Argentina peso (interbank)            16.0725    -0.14   -1.23
                                                         
 Argentina peso (parallel)               16.56    -0.18    1.57
 
 (Reporting by Bruno Federowski, editing by G Crosse)
  

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