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EMERGING MARKETS-Brazil real, stocks fall on potential Temer probe
November 25, 2016 / 2:07 PM / a year ago

EMERGING MARKETS-Brazil real, stocks fall on potential Temer probe

By Bruno Federowski
    SAO PAULO, Nov 25 (Reuters) - Brazil's currency and stocks
fell on Friday on concerns that fiscal reforms could be derailed
by a potential investigation into whether President Michel Temer
pressured an ex-minister to allegedly favor a cabinet
colleague's property investment.
    The real slipped as much as 2.2 percent to 3.4679
reais but later pared back losses to 1.1 percent. The benchmark
Bovespa stock index fell 0.7 percent.
    Brazil's public prosecutor is looking into whether to 
investigate Temer after a former culture minister told federal
police Temer had urged him to favor another Cabinet member who
was seeking a permit for an apartment building in a historic
preservation area. 
    Traders fear the investigations could make it harder for
Temer's administration to gather support for tough austerity
measures including a congressional amendment curbing growth of
public spending.
    Brazilian stock market losses were limited by a rise in
shares of miner Vale SA as prices of China-listed
iron ore futures extended their recent rally.
    Other Latin American markets were little changed in thin
trading the day after the U.S. Thanksgiving holiday. Many global
investors were away from their desks as North American markets
were scheduled to close early on Friday.
    Emerging market assets that had suffered following Donald
Trump's unexpected presidential victory, such as the Indian
rupee and the Mexican peso, rebounded on Friday.
    Key Latin American stock indexes and currencies at 1345 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
 MSCI Emerging Markets               854.52     0.29     7.29
 MSCI LatAm                         2275.66    -1.02    25.65
 Brazil Bovespa                    60963.32     -0.7    40.63
 Chile IPSA                         4203.23     0.16    14.21
 Chile IGPA                        20985.77     0.15    15.61
 Venezuela IBC                     27524.89     0.68    88.68
 Currencies                                  daily %    YTD %
                                              change   change
 Brazil real                         3.4327    -1.14    14.98
 Mexico peso                        20.6535     0.46   -16.58
 Chile peso                           677.3    -0.04     4.78
 Colombia peso                      3163.38     0.02     0.19
 Peru sol                              3.41     0.06     0.12
 Argentina peso (interbank)         15.5400     0.00   -16.46
 Argentina peso (parallel)            15.98    -0.19   -10.70

 (Editing by Daniel Flynn and Jeffrey Benkoe)

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