Brazilian equities rose on Monday as shares of CPFL Energia SA jumped on news that the world's largest utility, China's State Grid International Development Ltd, will buy a controlling stake in the company for 5.85 billion reais ($1.8 billion). In foreign exchange markets, the Brazilian real slipped as the central bank intervened for a second trading day to weaken the currency.
CPFL led the gains in Brazil's benchmark Bovespa stock index. Central bank chief Ilan Goldfajn said on Friday he saw a window of opportunity to reduce the bank's exposure to currency movements after the real posted its best monthly performance in 13 years in June.
Trading volumes were thin all over the region due to the US July Fourth public holiday, with the Mexican peso slightly lower as oil prices fell.
Signs of slowing demand for crude in Asia offset comments by Saudi Energy Minister Khaled Al-Faleh, who said that the market was heading toward balance.
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