October 17, 2017 / 3:13 PM / in a month

EMERGING MARKETS-Brazil stocks fall on political woes; Embraer drops

    By Bruno Federowski
    SAO PAULO, Oct 17 (Reuters) - Brazilian stocks fell on
Tuesday as lawmakers debated whether to put President Michel
Temer on trial before the Supreme Court, a potential blow to his
agenda of market-friendly reforms.
    Traders largely expect the center-right president to
successfully dodge corruption charges, as he did with a similar
string of accusations earlier this year.
    Still, a smaller-than-expected show of support for Temer
could indicate he will struggle to pass belt-tightening
measures, such as streamlining the nation's bloated social
security system.
    Brazil's benchmark Bovespa stock index fell 1
percent, slipping further from an all-time high reached earlier
this month.
    Shares of planemaker Embraer SA were the biggest
decliners, dropping the most in seven months after France's
Airbus SE acquired a majority stake in Bombardier Inc's
 CSeries jetliner program.
    Analysts at Banco BTG Pactual said the transaction is likely
to boost Bombardier's CSeries operations. Bombardier is a direct
competitor of Embraer.
    The Brazilian real weakened 0.2 percent, tracking
other Latin American currencies lower after a report that U.S.
President Donald Trump was leaning towards picking hawk John
Taylor as the next head of the Federal Reserve.
    A faster pace of U.S. interest rate hikes could dampen the
allure of high-yielding assets from emerging markets, weighing
on the value of their currencies.
    The Mexican peso was down 0.2 percent, while the
Chilean peso slipped 0.5 percent.
 
    Key Latin American stock indexes and currencies at 1720 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
                                  Latest              
 MSCI Emerging Markets              1125.49    -0.56    31.26
 MSCI LatAm                         2923.52    -0.94    26.09
 Brazil Bovespa                    76131.19    -0.99    26.41
 Mexico S&P/BVM IPC                49709.58    -0.02     8.91
 Chile IPSA                         5468.39    -0.31    31.72
 Chile IGPA                        27408.64    -0.25    32.19
 Argentina MerVal                  26852.13    -1.06    58.72
 Colombia IGBC                     11032.15    -0.47     8.93
 Venezuela IBC                       554.92     0.82   -98.25
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                     Latest           
 Brazil real                         3.1788    -0.22     2.21
 Mexico peso                        19.0600    -0.16     8.84
                                                      
 Chile peso                          622.61    -0.52     7.72
 Colombia peso                      2944.05    -0.44     1.95
 Peru sol                             3.247    -0.12     5.14
 Argentina peso (interbank)         17.3850    -0.22    -8.69
                                                      
 Argentina peso (parallel)            17.91    -0.06    -6.09
                                                      
 
 (Reporting by Bruno Federowski; Editing by Bernadette Baum)
  

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