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EMERGING MARKETS-Brazil real, stocks up as Senate debates spending cap
December 13, 2016 / 3:27 PM / 9 months ago

EMERGING MARKETS-Brazil real, stocks up as Senate debates spending cap

By Bruno Federowski
    SAO PAULO, Dec 13(Reuters) - Brazilian stocks and currencies
rose on Tuesday on hopes that lawmakers would swiftly approve a
key austerity measure later in the day.
    The Senate began final debate on a constitutional amendment
limiting growth of public spending, a crucial step in President
Michel Temer's efforts to curb public debt. 
    The Senate is expected to approve the spending ceiling by a
wide margin, though leftist opponents of the austerity measure
have sought to delay the vote as long as possible.
    The real strengthened 0.7 percent, outperforming all of its
Latin American peers.
    The country's benchmark Bovespa stock index rose 0.9
percent, with shares of Kroton SA the biggest
gainers.
    Analysts with JPMorgan Securities increase their
recommendation on the stock to "overweight," saying a 24 percent
underperformance versus the benchmark index over the past six
months might be overdone. 
    Other Latin American markets were steady as traders remained
cautious ahead of the U.S. Federal Reserve policy decision due
on Wednesday.
    The Fed is widely expected to raise interest rates and many
traders said the hike is fully priced in, but there are doubts
over whether it will send a strong signal that additional
increases are to come.

    Key Latin American stock indexes and currencies at 1510 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
                                   Latest             
 MSCI Emerging Markets               877.64     0.62     9.83
 MSCI LatAm                         2340.70     0.71    27.02
 Brazil Bovespa                    59582.71     0.68    37.45
 Mexico IPC                        46922.96     0.02     9.18
 Chile IPSA                         4244.58     0.05    15.34
 Chile IGPA                        21207.58    -0.01    16.84
 Argentina MerVal                  17177.75     0.11    47.13
 Colombia IGBC                      9897.98     0.08    15.80
 Venezuela IBC                     36444.54     0.26   149.82
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                                      
                                     Latest           
 Brazil real                         3.3220     0.69    18.81
 Mexico peso                        20.2740    -0.28   -15.01
 Chile peso                             649     0.03     9.35
 Colombia peso                         2984     0.17     6.21
 Peru sol                             3.397     0.09     0.50
 Argentina peso (interbank)         16.0200     0.09   -18.96
                                                      
 Argentina peso (parallel)            16.35    -0.06   -12.72
                                                      
 
 (Reporting by Brunno Federowski; Editing by Meredith Mazzilli)

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