EMERGING MARKETS-Brazil stocks up after lawmakers OK budget deficit
(Updates with afternoon prices) 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 argued, however, that the government could still face problems passing its fiscal austerity measures. Temer said on Tuesday he would seek a constitutional amendment to limit increases in public spending. The country's benchmark Bovespa stock index rose 0.51 percent on Wednesday. The move also tracked a rise on Wall Street and a jump in crude prices , with shares of state-controlled oil company Petrobras rising 1.64 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 0.47 percent. Key Latin American stock indexes and currencies at 2002 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 800.36 1.57 -0.77 MSCI LatAm 2,070.68 -0.3 13.51 Brazil Bovespa 49,597.47 0.51 14.41 Mexico IPC 45,710.94 0.47 6.36 Chile IPSA 3,959.00 0.09 7.58 Chile IGPA 19,527.38 0.08 7.58 Argentina MerVal 12,381.50 -0.74 6.05 Colombia IGBC 9,708.53 -0.74 13.59 Venezuela IBC 15,314.16 0.51 4.98 Currencies Latest Daily YTD pct pct change change Brazil real 3.5961 -0.6 9.76 Mexico peso 18.4615 0.10 -6.67 Chile peso 691.2 0.58 2.68 Colombia peso 3,059.85 0.09 3.58 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 Paul Simao and Peter Cooney)
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