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Brazil Markets Seesaw

Brazil Markets SeesawBrazil Markets Seesaw

Brazilian markets seesawed ahead of a crucial week for the government’s plans to streamline the social security system and curb public debt. Investors widely see the unpopular bill as crucial to regaining an investment grade rating, meeting budget laws and avoiding a fiscal crisis, Reuters reported. But lawmakers have shown strong resistance to the constitutional amendment, raising the threat that a lower house vote is delayed to early 2018. The government agreed with lawmakers to schedule a Dec. 18 vote on the bill, the week before Christmas recess. But President Michel Temer acknowledged the vote could happen only next year, dialing back on last week’s strict rhetoric. An early 2018 vote would edge dangerously close to presidential and parliamentary elections, making approval more unlikely. The Brazilian real firmed 0.1%, while the benchmark Bovespa stock index rose 0.8%. Trading in most Latin American markets was muted as investors avoided making big bets ahead of central bank meetings across the region. Central banks in Mexico, Colombia, Chile and Peru will meet throughout the week to set benchmark interest rates.

 

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