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EMERGING MARKETS-LatAm stocks, currencies seesaw on thin trading volumes

By Bruno Federowski

   

SAO PAULO, May 29 Latin American stocks andcurrencies seesawed on Monday on thin trading volumes, withseveral major foreign markets closed due to local holidays.

    

Holidays in the United States, China and the United Kingdomkept a lid on liquidity, driving many investors to remain on thesidelines.

    

In Brazil, traders also erred on the side of caution aheadof a key central bank decision after market close on Wednesdayand the release of first-quarter gross domestic product (GDP)figures on Thursday.

    

A mounting political scandal threatening to oust PresidentMichel Temer has led many to dial back bets on a sharp 125basis-point interest rate cut this week, with rate futuressuggesting a 100 basis-point instead.

    

Investors fear the crisis could delay the implementation ofambitious pension and labor market reforms seen as key to plug agrowing budget gap.

    

The Brazilian real slipped 0.1 percent, while thebenchmark Bovespa stock index fell 0.7 percent. 

    

Still, shares of meatpacker JBS SA rose 2.8percent after brothers Joesley and Wesley Batista, who own thecompany and are embroiled in the corruption scandal, resignedfrom senior posts.

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