EMERGING MARKETS-Brazilian stocks up after lawmakers approve budget deficit
By Bruno Federowski and Paula Arend Laier SAO PAULO, May 25 (Reuters) - Brazilian equities rose on Wednesday after interim President Michel Temer's government cleared its first major test in Congress, gaining permission to post a record budget gap this year. Many traders had feared Temer's two-week-old administration could struggle to gather support for the bill after the resignation of a high-ranking minister accused of plotting to hamper a sweeping corruption probe. "The honeymoon is over and Temer is taking his first steps in Congress," said Jaime Ferreira, head trader at Intercam brokerage in São Paulo. Some analysts, however, argued the government could still face problems passing its fiscal austerity measures. Temer said on Tuesday he will seek a constitutional amendment to limit increases in public spending. The country's benchmark Bovespa stock index rose 1.2 percent on Wednesday, supported by an increase in financial shares. The move also tracked a rise on Wall Street and a jump in crude prices , with shares of state-controlled oil company Petrobras rising over 2 percent. The U.S. government reported a larger-than-expected drop in crude stocks for last week, but oil prices remained below $50 as investors booked profits. Other Latin American markets also tracked oil prices higher, with the Mexican benchmark IPC index rising for the fourth consecutive session. Bottler and retail company Femsa was the biggest gainer. Key Latin American stock indexes and currencies at 1605 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 800.66 1.61 -0.77 MSCI LatAm 2076.55 -0.02 13.51 Brazil Bovespa 49920.15 1.17 15.16 Mexico IPC 45754.45 0.56 6.46 Chile IPSA 3965.90 0.26 7.76 Chile IGPA 19556.54 0.23 7.74 Argentina MerVal 12381.50 -0.74 6.05 Colombia IGBC 9711.51 -0.7 13.62 Venezuela IBC 15244.97 0.06 4.50 Currencies daily % YTD % change change Latest Brazil real 3.6022 -0.77 9.57 Mexico peso 18.4560 0.13 -6.64 Chile peso 692.2 0.43 2.53 Colombia peso 3060.95 0.06 3.54 Peru sol 3.339 0.21 2.25 Argentina peso (interbank) 14.0400 -0.28 -7.53 Argentina peso (parallel) 14.61 0.41 -2.33 (Reporting by Bruno Federowski and Paula Arend Laier; Editing by Editing by Paul Simao)
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