EMERGING MARKETS-Brazil currency, stocks slip as electoral court trial prompts caution

prompts caution@ SAO PAULO, June 8 (Reuters) - Brazil's stocks and currency fell on Thursday in thin trading as investors remained cautious over an electoral trial that could oust President Michel Temer. The majority of judges on Brazil's top electoral court (TSE) argued to exclude testimony by executives from conglomerate Odebrecht SA, potentially strengthening Temer's assertions that his campaign received no illegal funding when he ran as former leftist president Dilma Rousseff's running mate in 2014.

The court is expected to rule by Friday on whether to annul the election and unseat Temer. A final decision, however, could take months if an unfavorable verdict is appealed by Temer to the Supreme Court. Traders fear a protracted judicial process could delay Temer's bid to cut pension spending and reform labor laws, seen as critical to curb growth of public debt and shore up investor trust. The benchmark Bovespa stock index fell 0.9 percent. Cia Energética Paranaense stock was one of the biggest decliners after the power utility confirmed plans to raise funds through a sale of shares. The Brazilian real slipped 0.3 percent, and most other Latin American currencies were narrowly mixed.

Key Latin American stock indexes and currencies at 1640 GMT:

Stock indexes daily % YTD %

change change Latest

MSCI Emerging Markets 1018.10 0.23 17.8 MSCI LatAm 2544.00 -0.84 9.6 Brazil Bovespa 62617.00 -0.88 3.97 Mexico IPC 49121.57 -0.31 7.62 Chile IPSA 4855.60 -0.71 16.96 Chile IGPA 24349.95 -0.65 17.44 Argentina MerVal 22092.94 -0.56 30.59 Colombia IGBC 10749.27 -0.08 6.13 Venezuela IBC 94092.98 12.86 196.77 Currencies daily % YTD %

change change


Brazil real 3.2809 -0.29 -0.97 Mexico peso 18.2140 0.03 13.89 Chile peso 665.8 0.48 0.74 Colombia peso 2917.8 -0.20 2.87 Peru sol 3.271 -0.03 4.37 Argentina peso (interbank) 15.9875 0.08 -0.70 Argentina peso (parallel) 16.3 0.37 3.19

(Reporting by Bruno Federowski; Editing by W Simon)