Bovespa Drops for Second Day on Metal Price Concern; Real Slips
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Brazil’s Bovespa stock index dropped for a second day, led by metals and oil producers, as commodity prices declined and Deutsche Bank AG said lower domestic steel prices may crimp earnings for producers.
Gerdau SA and Usinas Siderurgicas de Minas Gerais SA, Brazil’s biggest steelmakers, sank more than 1.4 percent after Deutsche Bank stripped them of their “buy” ratings. Petroleo Brasileiro SA, Brazil’s state-controlled oil company, sank as crude dropped and the company said yesterday it will miss its domestic output target for the year. Light SA, Brazil’s second-biggest electricity distributor, jumped after Cia. Energetica de Minas Gerais said it may increase its stake in the company.