November 30, 2017 / 11:51 PM / 15 days ago

EMERGING MARKETS-Brazilian, Chilean equities slip as political concerns weigh

    SAO PAULO, Nov 30 (Reuters) - Brazil's benchmark equities
index and currency lost ground on Thursday as markets remained
jittery about the uneven progress of a pension reform bill seen
as key to shoring up the nation's fiscal health.        
    Worldwide, emerging markets came under heavy selling
pressure even as U.S. equity markets rallied, with the MSCI
International EM price index posting a 1.8 percent
loss for its steepest drop in six months. 
    Brazilian President Michel Temer is looking to gain solid
support for the pension bill from the centrist Brazilian Social
Democratic Party (PSDB). In order to get the 308 votes needed
for passage in Brazil's lower chamber, he will also need to win
the support of a number of smaller parties.
    "The only chance now is a definitive understanding between
(the PSDB and Temer's Brazilian Democratic Movement Party) to
pressure smaller actors into entering the accord with the risk
of losing more if they remain outside," analysts at Lerosa
Investimentos wrote in a note to clients.
    The Bovespa fell 1.0 percent, while the real slid
0.56 percent.
    Among the poor performers on the Bovespa was energy holding
company CPFL Energia SA, which plummeted more than 9
percent.
    Chile's blue-chip IPSA index also lost ground,
falling 0.58 percent, as investors remained wary about a tight
Dec. 19 presidential election. 
    Mexico's stocks and currency weakened as investors hesitated
ahead of the U.S. Senate's vote on Republicans' tax proposal.
Analysts said a tax cut could ultimately drive investments from
Mexico to the United States.
    Mexico's stock index fell 1.11 percent, with
telecommunications firm America Movil and retailer
Wal-Mart de Mexico falling 2.50 percent and 4.13
percent, respectively.    
    The Mexican peso weakened 0.37 percent to the
dollar.
    
    ($1 = 3.26 reais)
    
Key Latin American stock indexes and currencies at 1956 GMT:
    
 Stock indexes                         daily %      YTD %
                            Latest      change     change
 MSCI Emerging Markets      1120.24      -1.85      32.37
                                                
 MSCI LatAm                 2716.17      -2.33      18.81
                                                
 Brazil Bovespa            71573.24      -1.55      18.84
                                                
 Mexico IPC                47167.38      -0.96       3.34
                                                
 Chile IPSA                 5005.27      -0.15      20.57
                                                
 Chile IGPA                25177.22      -0.16      21.43
                                                
 Argentina MerVal          26864.71      -0.14      58.79
                                                
 Colombia IGBC             10827.12       -0.2       6.90
                                                
 Venezuela IBC              1319.87      13.08     -95.84
                                                
                                                         
 Currencies                            daily %      YTD %
                                        change     change
                             Latest             
 Brazil real                 3.2681       0.08      -0.58
                                                
 Mexico peso                18.6340      -0.37      11.32
                                                
 Chile peso                     647      -0.45       3.66
                                                
 Colombia peso               3015.9      -0.43      -0.48
                                                
 Peru sol                     3.233       0.03       5.60
                                                
 Argentina peso             17.3000       0.78      -8.24
 (interbank)                                    
                                                
 Argentina peso               17.91       1.17      -6.09
 (parallel)                                     
                                                
 
 (Reporting by Gram Slattery and Daina Beth Solomon; Editing by
Meredith Mazzilli and Dan Grebler)
  

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