SAO PAULO, Nov 29 (Reuters) - Brazil's stocks and currency fell on Wednesday, extending a recent trend of heightened volatility as traders seek new clues about the odds that Congress will approve a plan to streamline the social security system. Presidential Chief of Staff Eliseu Padilha said the government is unwilling to further water down the controversial bill, after repeatedly doing so in order to garner lawmaker support. His remarks worried traders who feared President Michel Temer's administration will not manage to get enough votes with the measure, which they see as critical to boosting long-term economic growth, as it stands. "The market read this as a sign that the government has no resources left to convince lawmakers to vote for the plan," said a trader at a São Paulo-based brokerage. The current version of the pension reform plan would generate fiscal savings of around 60 percent of the government's original proposal. Brazil's benchmark Bovespa stock index fell 1.3 percent, leading losses among equity markets in Latin America on declines in blue-chips such as lenders Itaú Unibanco Holding SA , Bradesco SA and state-controlled oil company Petróleo Brasileiro SA. The Brazilian real slipped 0.3 percent, in line with similar moves in the Chilean and Colombian pesos . Strong U.S. third-quarter economic growth data and signs of progress in U.S. Republicans' efforts to get a tax bill passed fueled expectations of inflationary pressure in the United States which could force the Federal Reserve to hike interest rates. Higher rates could dampen demand for emerging market currencies, which typically lure foreign investors with high yields.
Key Latin American stock indexes and currencies at 1720 GMT:
Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1141.06 -0.47 32.96 MSCI LatAm 2785.24 -0.77 19.92 Brazil Bovespa 73161.61 -1.32 21.48 Mexico S&P/BVM IPC 47235.03 0.01 3.49 Chile IPSA 5043.52 -0.35 21.49 Chile IGPA 25359.97 -0.34 22.31 Argentina MerVal 26851.59 -0.23 58.72 Colombia IGBC 10815.71 0.08 6.79 Venezuela IBC 1089.50 27.94 -96.56 Currencies daily % YTD %
change change Latest
Brazil real 3.2159 -0.27 1.04 Mexico peso 18.5125 0.16 12.05 Chile peso 642.8 -0.27 4.34 Colombia peso 3003.93 -0.39 -0.08 Peru sol 3.232 0.03 5.63 Argentina peso (interbank) 17.4150 -0.14 -8.84 Argentina peso (parallel) 18.06 0.44 -6.87
(Reporting by Bruno Federowski; Editing by Susan Thomas)