SAO PAULO: Brazilian stocks seesawed on Monday after posting their best quarter in eight years, as investors awaited further hints over President Michel Temer’s efforts to pass market-friendly reforms. The benchmark Bovespa stock index slipped as much as 0.6 percent in early afternoon trading after rising 18 percent in the third quarter. The lower house of Congress, which has the authority to decide whether a president should be put on trial, is expected to vote on the new charges in mid-October. “Investors will monitor whether the government will be able to block the charges and, also, at what cost,” analysts at Lerosa Investimentos brokerage wrote in a client note.
The Brazilian real seesawed on trader caution. The Mexican peso firmed 0.10 percent after posting its worst week in the year. Demand for emerging market currencies waivered in recent weeks after the U.S. Federal Reserve hinted that it may raise interest rates in December, potentially draining funds from high-yielding assets. That contradicted those who expected the U.S. central bank to hold off on tightening policy until it saw clear signs that inflation was heading to its 2 percent goal.
