With lawmakers discussing and voting on President Michel Tener's plans to revamp labor regulations during an ongoing political crisis, traders hedged their bets on the outcome by edging up Brazilian stocks.
Investors see the planned labor reform as critical to boosting long-term economic growth. It is expected to clear a final Senate vote later. The vote, according to traders, will act as a gauge of lawmakers' support for Tener's reform platform.
Brazil's Bovespa stock index rose 0.4 percent. Rising prices of crude and iron ore lifted shares of state-controlled oil company Petróleo Brasileiro SA and miner Vale SA. Embraer SA also advanced while the Brazilian real teetered in response.
Traders and lawmakers alike are looking to U.S. economic indicators and Latin American currencies for clues as the legislation and economic situation progress.
Read more at Reuters.