US AND Latin American equity markets plunged and the JP Morgan EMBI+ index shot back over the 1,000bp mark yesterday after Brazil reignited fears of emerging market troubles by failing to pass vital social security reform. In the first serious blow to Brazil's $84bn three year fiscal cutting plans, the country's congress rejected a crucial measure that sought to increase civil servant contributions to the pension system and which was projected to save at least R$2.7bn in 1999.
December 04, 1998