Brazil’s Bovespa jumps as legislators organize behind pension bill
Brazil’s benchmark Bovespa index led gains among Latin American equities markets on Tuesday, as the governing coalition appeared closer to gaining the votes needed to pass a pension reform.
The reform, seen as important to shoring up Brazil’s fiscal health, has been by far the dominant factor in the Bovespa’s performance for weeks.
Late on Monday, Rodrigo Maia, the speaker of Brazil’s lower house, told journalists that President Michel Temer was still far from assembling the coalition needed to pass the reform, but potential supporters were now far more organized than last week.
Earlier on Tuesday, congressmen in Temer’s Brazilian Democratic Movement Party (PMDB) decided to ask the party leadership to formalize support for the measure, a source told Reuters. Other parties, in particular the Brazilian Social Democracy Party (PSDB), are expected to decide on a similar step soon.
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