By Bruno Federowski
SAO PAULO, June 12 Brazil's stocks and currency
slipped on Monday as traders feared lengthy legal proceedings
against President Michel Temer could further delay the
implementation of his reform agenda.
The top electoral court on Friday dismissed a case that
threatened to unseat Temer, giving him some breathing room but
potentially lengthening a political crisis. Temer is being
investigated separately by federal prosecutors for corruption,
obstruction of justice and racketeering.
Brazilian markets have sold off since the scandal broke last
month as questions grew over the future of Temer's planned
reforms of the country's pension system and labor regulations.
The Brazilian real slipped 0.6 percent on Monday
after weakening nearly 5 percent since May 18, when reports
emerged that Temer was caught on tape allegedly condoning bribes
to silence a key witness in a corruption case.
The benchmark Bovespa stock index fell 1 percent,
weighed down by blue chips such as lenders Banco Bradesco SA
and Itaú Unibanco Holding SA and miner
Also fueling caution was the Federal Reserve's policy
meeting this week, when the U.S. central bank is expected to
hike rates a notch.
Still, a mixed batch of economic figures has cooled bets on
further hikes, with traders looking to the Fed's policy
statement for clues on the pace of future tightening.
The Mexican peso was nearly flat after touching a
10-month high last week, while the Chilean peso firmed
Key Latin American stock indexes and currencies at 1610 GMT:
Stock indexes daily % YTD %
Latest change change
MSCI Emerging Markets 1007.51 -1.05 18.08
MSCI LatAm 2507.95 -1.1 8.34
Brazil Bovespa 61577.73 -1.02 2.24
Mexico IPC 49127.71 0.09 7.63
Chile IPSA 4841.57 -0.1 16.63
Chile IGPA 24262.96 -0.1 17.02
Argentina MerVal 21467.78 -0.67 26.89
Colombia IGBC 10731.46 -0.21 5.96
Venezuela IBC 101665.00 10.19 220.66
Currencies daily % YTD %
Brazil real 3.3094 -0.57 -1.82
Mexico peso 18.1730 -0.02 14.15
Chile peso 661.46 0.26 1.40
Colombia peso 2924.32 -0.39 2.64
Peru sol 3.276 -0.27 4.21
Argentina peso (interbank) 15.9450 -0.16 -0.44
Argentina peso (parallel) 16.36 -0.06 2.81
(Reporting by Bruno Federowski; Editing by Dan Grebler)