By Bruno Federowski
SAO PAULO, June 8 (Reuters) - Brazil's stocks and currency fell on Thursday in thin trading as investors remained cautious over an electoral trial that could oust President Michel Temer.
The majority of judges on Brazil's top electoral court (TSE) argued to exclude testimony by executives from conglomerate Odebrecht SA, potentially strengthening Temer's assertions that his campaign received no illegal funding when he ran as former leftist president Dilma Rousseff's running mate in 2014. The court is expected to rule by Friday on whether to annul the election and unseat Temer. A final decision, however, could take months if an unfavorable verdict is appealed by Temer to the Supreme Court.
Traders fear a protracted judicial process could delay Temer's bid to cut pension spending and reform labor laws, seen as critical to curb growth of public debt and shore up investor trust.
The benchmark Bovespa stock index fell 0.9 percent.
Cia Energ?(C)tica Paranaense stock was one of the biggest decliners after the power utility confirmed plans to raise funds through a sale of shares. The Brazilian real slipped 0.3 percent, and most other Latin American currencies were narrowly mixed.
Key Latin American stock indexes and currencies at 1640 GMT:Stock indexes daily % YTD %
changechange
Latest MSCI Emerging Markets 1018.10 0.2317.8MSCI LatAm 2544.00-0.84 9.6Brazil Bovespa 62617.00-0.883.97Mexico IPC 49121.57-0.317.62Chile IPSA 4855.60-0.71 16.96Chile IGPA 24349.95-0.65 17.44Argentina MerVal 22092.94-0.56 30.59Colombia IGBC 10749.27-0.086.13Venezuela IBC 94092.9812.86196.77
Currenciesdaily % YTD %
changechange
Latest Brazil real 3.2809-0.29 -0.97Mexico peso 18.2140 0.03 13.89Chile peso 665.8 0.480.74Colombia peso 2917.8-0.202.87Peru sol 3.271-0.034.37Argentina peso (interbank) 15.9875 0.08 -0.70 Argentina peso (parallel) 16.3 0.373.19 (Reporting by Bruno Federowski; Editing by W Simon)
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