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EMERGING MARKETS-Brazil real up on easing political concerns, global risk appetite
December 7, 2016 / 3:10 PM / 10 months ago

EMERGING MARKETS-Brazil real up on easing political concerns, global risk appetite

By Bruno Federowski
    SAO PAULO, Dec 7 (Reuters) - The Brazilian real strengthened
on Wednesday as concerns eased that the ouster of Senate
President Renan Calheiros could potentially delay the approval
of fiscal measures.
    Major newspapers reported Brazil's Supreme Court is seeking
an agreement that would allow Calheiros to keep his post if he
agrees to step out of the presidential line of succession.
 
    Calheiros had refused on Tuesday to accept a Supreme Court
injunction removing him from office because he was indicted last
week for embezzlement, pushing the country towards a
constitutional crisis. 
    The Brazilian real strengthened as much as 1.3
percent to a two-week high, but later pared gains to trade 0.7
percent higher.
    Other Latin American currencies also firmed, supported by
worldwide appetite for riskier assets. The Turkish lira reached
a one-week high, lifted by authorities' steps to stem the
currency's weakness while emerging stocks rose for the third
straight day.
    Brazil's benchmark Bovespa stock index rose 0.3
percent. Gains were limited by a drop in shares of
state-controlled oil company Petróleo Brasileiro SA 
 amid falling oil prices.
    Yields paid on rate future contracts <0#2DIJ:> fell as
traders increased bets that the central bank will accelerate its
rate cuts in its January meeting. 
    Central bank Governor Ilan Goldfajn said a
weaker-than-expected recovery could pave the way for a heftier
rate cut next month. 
    
    Key Latin American stock indexes and currencies at 1455 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
                                   Latest             
 MSCI Emerging Markets               867.35     0.68     8.48
 MSCI LatAm                         2325.54      1.4    25.34
 Brazil Bovespa                    61292.88     0.33    41.39
 Mexico IPC                        45287.91     0.41     5.38
 Chile IPSA                         4213.33    -0.02    14.49
 Chile IGPA                        21027.93    -0.01    15.85
 Argentina MerVal                  17249.98     0.08    47.75
 Colombia IGBC                      9809.63    -0.06    14.77
 Venezuela IBC                     36330.65    -0.27   149.04
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                                      
                                     Latest           
 Brazil real                         3.3907     0.74    16.41
 Mexico peso                        20.2700     0.57   -15.00
 Chile peso                          654.15     0.89     8.49
 Colombia peso                         2986     0.50     6.14
 Peru sol                             3.407     0.18     0.21
 Argentina peso (interbank)         15.9300    -0.09   -18.50
                                                      
 Argentina peso (parallel)            16.19    -0.06   -11.86
                                                      
 

 (Reporting by Bruno Federowski; Editing by Nick Zieminski)

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