Brazilian Stocks Drop on Interest-Rate Outlook; Real Retreats
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The Bovespa stock index fell for the first time in six days on concern prospects for higher borrowing costs make the longest stretch of weekly gains in 17 months excessive relative to the outlook for earnings.
Retailer Cia. Brasileira de Distribuicao Grupo Pao de Acucar fell as traders increased bets for higher borrowing costs after a central bank survey showed economists expect quickening inflation this year. BM&FBovespa SA, the operator of Brazil’s biggest securities exchange, slid after Valor Economico newspaper said the government may announce measures this week to reduce the amount of leverage allowed in futures-market trading.