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EMERGING MARKETS-Brazil currency, stocks seesaw on reform doubts
April 11, 2017 / 2:31 AM / 8 months ago

EMERGING MARKETS-Brazil currency, stocks seesaw on reform doubts

 (Updates with final prices)
    SAO PAULO, April 10 (Reuters) - Brazil's currency and stocks seesawed on
Monday, reflecting uncertainty over the passage of a proposed pension reform and
the impact of sliding iron ore prices in China.
    Brazil's real weakened as much as 0.2 percent before closing up 0.18
percent at 3.137 per dollar. The benchmark Bovespa stock index likewise
fell in early trading before closing very slightly up.
    Investors are gauging the difficulty of passing a reform to cut social
security expenses by 700 billion reais ($223 billion) over the next decade. In
recent days, informal polls by local media have indicated a lack of
congressional support for the plan, which senior government officials are trying
to downplay.
    Expectations that the central bank will cut its benchmark Selic overnight
lending rate by a full percentage point on Wednesday have been offset by a
wait-and-see approach to the reform agenda, the cornerstone of President Michel
Temer's plan to pull Brazil from its worst economic recession on record.
    "There was no progress in the pension reform process since the last
interest-rate meeting" almost 45 days ago, said a research report by Itaú BBA,
noting that "resistance in Congress seems to be growing."
    Preferred shares of Itaú Unibanco Holding SA, the stock with the
largest weighting in the Bovespa, fell 0.18 percent. The bank won a 25
billion-real ($8 billion) tax case with the government on Monday, although it
can be appealed by tax agency officials.
    Preferred shares of Vale SA, the world's top iron ore producer,
shed as much as 2 percent during the session as prices for the mineral fell in
China, but closed almost flat.
    Key Latin American stock indexes and currencies at 2200 GMT:
 Stock indexes                              daily %     YTD %
                               Latest        change    change
 MSCI Emerging Markets              958.64     0.07      11.1
 MSCI LatAm                        2643.76    -0.17     12.95
 Brazil Bovespa                   64649.81     0.09      7.34
 Mexico IPC                       49540.26      0.4      8.54
 Chile IPSA                        4900.42     0.25     18.04
 Chile IGPA                       24543.96     0.29     18.37
 Argentina MerVal                 20926.18     0.95     23.69
 Colombia IGBC                    10234.51     0.58      1.05
 Venezuela IBC                     45387.6    -1.36     43.15
 Currencies                                 daily %     YTD %
                                             change    change
 Brazil real                         3.137     0.18      3.74
 Mexico peso                       18.6870    -0.06     11.01
 Chile peso                          652.8     0.41      2.74
 Colombia peso                        2860     0.00      4.76
 Peru sol                            3.245     0.00      5.21
 Argentina peso (interbank)         15.200     0.85      4.44
 Argentina peso (parallel)           15.58     0.38      7.96
    ($1 = 3.14 reais)

 (Reporting by Guillermo Parra-Bernal and Claudia Violante; Editing by Dan
Grebler and Biju Dwarakanath)

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