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EMERGING MARKETS-Brazil real weakens in volatile trading amid nationwide strikes
April 28, 2017 / 4:20 PM / 7 months ago

EMERGING MARKETS-Brazil real weakens in volatile trading amid nationwide strikes

    By Bruno Federowski
    SAO PAULO, April 28 (Reuters) - The Brazilian real weakened
in volatile trading on Friday as traders assessed the
implications of nationwide strikes led by Brazilian unions to
protest President Michel Temer's austerity measures.
    Some investors worried that the demonstrations could hamper
Temer's campaign to raise lawmaker support for reforms of the
country's pension system and labor laws, seen as key to lift
Latin America's largest economy from a deep recession.

    Others argued that uncertainty had already reflected on
asset prices, after tight votes in Congress last week raised
doubts over the government's strength.
    The Brazilian real fell as much as 1 percent after
strengthening 0.3 percent in early trading.
    Volatility also spiked ahead of the settlement of the
month-end Ptax rate, which is widely used to price foreign
exchange contracts in Brazil.
    The country's benchmark Bovespa stock index,
however, was firmly up, reacting to a heavy batch of corporate
updates.
    Shares of GPA SA were the biggest gainers after
stronger-than-expected margins helped Brazil's largest retailer
swing to a profit in the first quarter.
    Trading in other Latin American markets was muted, with
traders mostly shrugging off weaker-than-expected U.S. gross
domestic product figures. The Chilean peso fell 0.6
percent, while the Mexican peso rose 0.5 percent.

    
    Key Latin American stock indexes and currencies at 1600 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
                                  Latest              
 MSCI Emerging Markets               977.56    -0.21    13.61
 MSCI LatAm                         2601.92     0.24    10.89
 Brazil Bovespa                    65191.81      0.8     8.24
 Mexico IPC                        49329.30    -0.23     8.08
 Chile IPSA                         4800.70     0.37    15.64
 Chile IGPA                        24110.04      0.3    16.28
 Argentina MerVal                  20933.01      0.2    23.73
 Colombia IGBC                     10135.44     0.26     0.07
 Venezuela IBC                     56710.77      0.5    78.87
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                     Latest           
 Brazil real                         3.1896    -0.29     1.87
 Mexico peso                        18.9400     0.45     9.52
                                                      
 Chile peso                           666.6    -0.59     0.62
 Colombia peso                      2947.55    -0.26     1.83
 Peru sol                             3.243     0.06     5.27
 Argentina peso (interbank)         15.4250     0.11     2.92
                                                      
 Argentina peso (parallel)            15.91     0.25     5.72
                                                      
 

 (Reporting by Bruno Federowski; Editing by Dan Grebler)
  

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