December 6, 2017 / 3:59 PM / a year ago

EMERGING MARKETS-Brazil markets seesaw; all eyes on pension reform vote

    By Bruno Federowski
    SAO PAULO, Dec 6 (Reuters) - Brazilian markets seesawed on
Wednesday as the government rushed to gather lawmaker support
for a plan to streamline the social security system and curb
government debt.
    A senior lawmaker in the government's coalition in the lower
house said he expected to have enough votes to pass the
constitutional amendment later on Wednesday, paving the way for
a vote next Tuesday.
    Per his count, the bill had the support of about 260 votes,
well short of the 308 votes needed to pass the lower house.
    "The market sees the government's efforts to put the pension
reform to vote this year as positive, but nothing's set in stone
so there's reason to be wary," said Felipe Pellegrini, a manager
at Banco Confidence.
    The Brazilian real slipped 0.1 percent, while the
benchmark Bovespa stock index fell 0.5 percent.
    Shares of Centrais Elétricas Brasileiras SA were
the biggest decliners on the index as traders feared the
privatization of the state-owned power utility could take longer
than expected.
    Wood pulpmaker Fibria SA jumped 5.3 percent after
the company forecast a 60 percent increase in investments next
    The Mexican peso slipped 0.7 percent after data
showed strong job creation in the U.S. manufacturing sector,
which drove some expectations of faster-than-expected interest
rate hikes by the Federal Reserve in coming months that could
drain funds away from emerging markets.
    The figures came ahead of the U.S. Labor Department's more
comprehensive non-farm payrolls report on Friday, which includes
both public and private-sector employment. 

    Key Latin American stock indexes and currencies at 1540 GMT:
 Stock indexes                               daily %    YTD %
                                    Latest    change   change
 MSCI Emerging Markets              1099.10    -1.66    29.62
 MSCI LatAm                         2719.01    -0.88     17.2
 Brazil Bovespa                    72171.14    -0.52    19.83
 Mexico S&P/BVM IPC                47213.47    -0.53     3.44
 Chile IPSA                         4901.02    -0.49    18.06
 Chile IGPA                        24681.98    -0.51    19.04
 Argentina MerVal                  26243.39     -0.9    55.12
 Colombia IGBC                     10818.24    -0.19     6.81
 Venezuela IBC                      1346.17     0.02   -95.75
 Currencies                                  daily %    YTD %
                                              change   change
 Brazil real                         3.2370    -0.10     0.38
 Mexico peso                        18.8910    -0.66     9.81
 Chile peso                          653.62     0.00     2.61
 Colombia peso                      3005.49    -0.45    -0.13
 Peru sol                             3.237     0.00     5.47
 Argentina peso (interbank)         17.2500     0.26    -7.97
 Argentina peso (parallel)             17.9     0.34    -6.03
 (Reporting by Bruno Federowski; Editing by Meredith Mazzilli)
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