U.S. Markets closed

EMERGING MARKETS-Brazil's real, stocks weaken on pension reform concerns

June 27 (Reuters) - Brazil's real weakened on Thursday, hit by concerns about the passage of the country's pension reform bill and economic growth, while uncertainty ahead of U.S.-China talks at the G20 summit hindered gains in other Latin American currencies. The real fell about 0.6% to hit a weekly low against the dollar after a Brazilian special congressional pension committee canceled a meeting that would have given its verdict on the government's signature bill, a legislative aide said. The move makes it more difficult to put the bill to a plenary vote before parliament breaks for recess on July 18, further delaying the much-needed reforms to revive economic growth. Adding to woes, Brazil's central bank slashed its 2019 economic growth forecast to 0.8% from 2.0% and said growth is likely to be lower than previously expected through 2021. Sao Paulo-listed shares fell 0.8%, with banking stocks such as Itau Unibanco Holding and Banco Bradesco, sensitive to news on pension reforms, leading declines. The biggest gainer was Grupo Pao de Acucar, which jumped over 10% after its parent French retailer Casino announced a restructuring plan for the Brazilian subsidiary. The Mexican peso and other currencies in the region edged lower amid uncertainty about trade talks between the U.S. and Chinese leaders at the G20 Summit. Mexico's central bank is expected to hold its benchmark interest rate steady at 8.25%, according to a Reuters poll, as annual inflation slowed this month despite signs of weakness in the economy. Banxico will publish its monetary policy statement on Thursday at 1 p.m. local time (1800 GMT). "While growth keeps disappointing and inflation converges slowly towards Banxico's inflation target, the lack of clarity regarding Pemex's business plan will likely keep Banxico on the sidelines and wait for further confirmation of core inflation easing," Morgan Stanley analysts wrote in a note. The peso has been hit hard by concerns about trade with the United States and well as credit rating downgrade on the debt-laden state oil company Pemex. Latin American stock indexes and currencies at 1400 GMT Stock indexes daily % Latest change MSCI Emerging Markets 1053.82 0.56 MSCI LatAm 2808.46 -1.22 Brazil Bovespa 99628.25 -1.05 Mexico IPC 43612.54 -0.41 Chile IPSA - - Argentina MerVal - - Colombia IGBC 12679.14 0.59 Currencies daily % change Latest Brazil real 3.8711 -0.64 Mexico peso 19.1700 -0.23 Chile peso 678.9 0.01 Colombia peso 3194.2 -0.40 Peru sol - - Argentina peso 42.7500 -0.43 (interbank) (Reporting by Sruthi Shankar in Bengaluru; Editing by Cynthia Osterman)