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EMERGING MARKETS-Brazil stocks fall for 2nd day on pension reform jitters
November 10, 2017 / 5:04 PM / 14 days ago

EMERGING MARKETS-Brazil stocks fall for 2nd day on pension reform jitters

    By Bruno Federowski
    SAO PAULO, Nov 10 (Reuters) - Brazilian stocks fell for a
second day on Friday as concerns over President Michel Temer's
ability to streamline the social security system weighed on
demand for local assets.
    After a week of conflicting signs from policymakers, traders
generally agree that the most likely scenario is Congress will
vote on pension reform by early 2018.
    Investors see the bill as key to curbing growth of public
debt and boosting long-term growth. Still, they fear lawmakers
may greatly water down the plan, seeking to preserve their image
ahead of the 2018 elections.
    "There's really no telling what exactly will be discussed or
approved," Modalmais chief economist Alvaro Bandeira said.
    The benchmark Bovespa stock index fell 0.6 percent.
Shares of Centrais Elétricas Brasileiras SA slumped
for a second day after development bank BNDES said the power
utility  will sell power distribution firms for a "symbolic
    The Brazilian real weakened 0.3 percent, on a day
when most Latin American currencies seesawed as traders awaited
further clues on the future of U.S. President Donald Trump's tax
    Disappointment that a landmark U.S. tax overhaul may be
delayed until 2019 put a brake on the dollar's recent rally.
Investors say the tax reform could stoke inflation and force the
Federal Reserve to raise rates at a faster-than-expected pace,
drawing capital away from emerging market economies.
    Key Latin American stock indexes and currencies at 1640 GMT:
 Stock indexes                              daily %     YTD %
                                             change    change
 MSCI Emerging Markets             1128.11     -0.5     31.49
 MSCI LatAm                        2764.11    -0.78     19.02
 Brazil Bovespa                   72475.19    -0.62     20.34
 Mexico S&P/BVM IPC               48384.33    -0.68      6.01
 Chile IPSA                        5418.59    -0.46     30.52
 Chile IGPA                       27289.26     -0.4     31.61
 Argentina MerVal                 27421.15     -1.9     62.08
 Colombia IGBC                    10768.83    -0.35      6.33
 Venezuela IBC                      657.67    -4.06    -97.93
 Currencies                                 daily %     YTD %
                                             change    change
 Brazil real                        3.2693    -0.32     -0.61
 Mexico peso                       19.0665    -0.17      8.80
 Chile peso                         630.98    -0.18      6.29
 Colombia peso                     3010.15    -0.08     -0.29
 Peru sol                            3.242    -0.03      5.31
 Argentina peso (interbank)        17.5050     0.06     -9.31
 Argentina peso (parallel)           17.89     0.34     -5.98
 (Reporting by Bruno Federowski; Editing by Steve Orlofsky)

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