EMERGING MARKETS-Brazilian stocks up after lawmakers approve budget deficit

miércoles 25 de mayo de 2016 12:22 GYT

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
    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
    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
 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
 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)