Bovespa Index Futures Decline as Egypt Overshadows Rate Bets

Bovespa stock-index futures fell, with the gauge heading to a fourth weekly drop, as concern Egypt’s political crisis will hurt global growth overshadowed declining bets for higher interest rates in Brazil.

Cia. Brasileira de Distribuicao Grupo Pao de Acucar, Brazil’s biggest retailer, may be active after being raised to “overweight” from “neutral” at HSBC Holdings Plc. Petroleo Brasileiro SA may move after the state-controlled oil company said in an e-mail it is “surprised” by the suspension of its Cherne-2 platform by authorities.

Bovespa futures fell 0.1 percent to 64,580 at 7:24 a.m. New York time. The real dropped 0.3 percent to 1.6723 per dollar.

Brazil’s benchmark stock index advanced yesterday, rebounding from the biggest drop since November, on speculation policy makers may limit taking additional steps to cool the economy after consumer lending slowed in January.

Stocks around the world fell after Egyptian President Hosni Mubarak defied calls for his resignation yesterday. He handed day-to-day powers to Vice President Omar Suleiman while reiterating plans to stay on until elections in September.

Duratex SA, the Brazilian producer of wood panels and bathroom fixtures, may move after being rated “overweight” in new coverage at JPMorgan Chase & Co.

The Bovespa fell 6.8 percent this year through yesterday on concern rising inflation will spur additional measures to restrict credit growth. The index trades for 10.5 times analysts’ earnings estimates, the cheapest since March 2009, according to weekly data compiled by Bloomberg. That compares to a ratio of 13.1 for the Shanghai Composite Index, 7.4 for Russia’s Micex, and 17.1 for India’s Sensex.

To contact the reporters on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulous@bloomberg.net

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