Bovespa stock-index futures fell, signaling the measure may drop for a fifth day, as commodities prices dropped, dimming the outlook for producers.
Iron-ore miner Vale SA (VALE3) fell in U.S. trading, following metals prices lower. Localiza Rent a Car SA (RENT3), Latin America’s biggest car-rental company, may be active after it reported a 30.3 percent increase in its first-quarter profit, according to a statement published on the company’s website.
Bovespa stock-index futures fell 0.2 percent to 67,520 at 8:16 a.m. New York time. The gauge declined for a fourth day yesterday, the longest losing streak in more than two months, on speculation China may take further measures to cool the economy and curb inflation in Brazil’s biggest trading partner.
The real weakened 0.2 percent to 1.5893 per U.S. dollar.
“Commodities prices might be entering a down cycle,” said Rodrigo Mello, who helps manage 250 million reais ($157 million) as partner at Oren Investimentos in Rio de Janeiro. “The Brazilian stock market would be hurt if that happens.”
Oil slipped to trade near its lowest in two weeks in New York on speculation that price gains from the biggest drop in U.S. gasoline supplies in 12 years may have been excessive.
Copper, a bellwether for global growth, fell for a fourth day in London, the longest streak since January, on concern demand may slow as China steps up credit-tightening measures.
Miner Vale and oil producer Petroleo Brasileiro SA (PETR4) account for about 28 percent of the Bovespa’s weighing.
Lupatech SA (LUPA3), Brazil’s biggest provider of oil equipment and services, may be active after it said in a filing it dismissed Thiago Alonso de Oliveira from the role of chief financial officer. The company named Alexandre Jose Guerra de Castro Monteiro to a newly created position of vice president of finance.
MRV Engenharia & Participacoes SA, a Brazilian homebuilder, may move after it said its preliminary first-quarter contracted sales were 830.8 million reais, a 13.4 percent increase from a year earlier, according to a regulatory filing.
OGX Petroleo & Gas Participacoes SA, the oil company controlled by billionaire Eike Batista, may me active after Jose Brito de Oliveira, its production executive manager, said the company is contracting for a third drilling rig in the Parnaiba Onshore Basin. OGX expects to produce 40,000 barrels a day at the Waimea Field in Brazil in 2012, Oliveira said at an event in Rio de Janeiro.
Bradespar SA (BRAP3) may be active as the holding unit of Banco Bradesco SA (BBDC4) has no plans to sell its 5.3 percent stake in CPFL Energia SA (CPFE3) in the “short-term,” Renato da Cruz Gomes, Bradespar’s investor relations director, said at a meeting in Sao Paulo.
The Bovespa is down 4.1 percent this year through yesterday as homebuilders and banks declined on concern inflation will limit growth, overshadowing a rally in telecom shares.
The index trades at 11 times analysts’ earnings estimates, according to weekly data compiled by Bloomberg. That compares to a ratio of 14.1 for the Shanghai Composite Index, 7.7 for Russia’s Micex, and 15.2 for India’s Sensex.
Investors pulled 2.54 billion reais from Latin America’s biggest equity market this year through April 6, data from the Sao Paulo exchange show.
To contact the reporter on this story: Ney Hayashi in Sao Paulo at firstname.lastname@example.org