June 28, 2017 / 4:51 PM / a year ago

EMERGING MARKETS-Brazil markets seesaw on reform uncertainty

    SAO PAULO, June 28 (Reuters) - Brazilian markets seesawed on
Wednesday as traders awaited further clues over the future of
President Michel Temer's economic reform plans amid a political
    The Brazilian real strengthened 0.6 percent after
trading near flat earlier in the session. The country's
benchmark Bovespa stock index fell as much as 0.4
percent before rebounding to gain 0.5 percent at its peak.
    A growing corruption scandal has fueled bets of delays to
the implementation of planned reforms of the country's pension
system and labor laws. Still, the labor revamp is expected to
pass a vote on a congressional committee on Thursday, paving the
way for a full-house vote in the Senate next week.
    Shares of college operator Estácio Participações SA
 slid 2 percent, the biggest decliner on the Bovespa
index, as regulators looked set to veto a tie-up with larger
rival Kroton Educacional SA, whose shares rose 1.2
    A person with direct knowledge of the situation told Reuters
that Brazil's antitrust watchdog Cade believes the transaction,
which would lead to the creation of the world's No. 1 for-profit
education company by number of students and market
capitalization, is not politically palatable.
    Trading was muted in most other Latin American markets, with
most currencies edging slightly up on the back of higher prices
of commodities from copper and iron ore to crude.
    The Mexican peso firmed 0.7 percent to 17.87 per
dollar after briefly breaching on Tuesday the psychological
barrier of 18 per greenback.
    Key Latin American stock indexes and currencies at 1630 GMT:
 Stock indexes                Latest        Daily     YTD
                                              pct     pct
                                           change  change
 MSCI Emerging Markets          1,012.18    -0.44   17.91
 MSCI LatAm                     2,529.28     0.62    7.39
 Brazil Bovespa                61,846.71     0.28    2.69
 Mexico S&P/BVM IPC            49,250.15     0.33    7.90
 Chile IPSA                     4,762.97     0.07   14.73
 Chile IGPA                    23,855.51     0.07   15.05
 Argentina MerVal              21,378.05     0.71   26.36
 Colombia IGBC                 10,772.17     1.02    6.36
 Venezuela IBC                121,949.09    -0.39  284.63
 Currencies                       Latest    Daily     YTD
                                              pct     pct
                                           change  change
 Brazil real                      3.2997     0.55   -1.53
 Mexico peso                     17.8680     0.67   16.10
 Chile peso                       662.41     0.11    1.25
 Colombia peso                   3,018.8     0.21   -0.57
 Peru sol                          3.251     0.15    5.01
 Argentina peso (interbank)      16.3650     0.21   -2.99
 Argentina peso (parallel)         16.61     0.66    1.26
 (Reporting by Bruno Federowski)
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