Bovespa Stock-Index Futures Decline as Commodities Prices Drop

Bovespa-index futures fell, indicating the equity gauge may retreat from yesterday’s gain, as lower commodities prices dimmed the outlook for Brazilian raw-material producers.

Petroleo Brasileiro SA, Brazil’s state-controlled oil company, fell in Frankfurt trading as oil prices declined. State-controlled electricity utility Cia. Energetica de Minas Gerais may move after saying in a regulatory filing it paid 67.2 million reais ($36.1 million) for a 4.4 percent stake in gas distributor Cia. de Gas de Minas Gerais.

Bovespa futures fell 0.2 percent to 58,590 at 10:26 a.m. in Sao Paulo. The real was little changed at 1.8612 per U.S. dollar.

“The external outlook is still worrisome, problems in Europe are still there and nothing structural has changed,” Rogerio Freitas, a partner at hedge fund Teorica Investimentos, said by phone from Rio de Janeiro.

Oil declined from a six-week high as concerns eased that Iran will block the Strait of Hormuz, a corridor linking the Persian Gulf with international ports. The Standard & Poor’s GSCI index of 24 raw materials fell 0.4 percent.

The Bovespa entered a bull market in October after gaining 22 percent from a two-year low on Aug. 8 as interest-rate cuts in Brazil and signs of progress in solving Europe’s debt crisis buoyed demand for equities. The measure is still down 16 percent this year on concern flagging global commodity demand and quickening inflation will hurt corporate earnings growth.

The index trades at 10.2 times analysts’ earnings estimates, in line with the ratio for MSCI Inc.’s measure of 21 developing nations’ equities, weekly data compiled by Bloomberg show.

Traders moved 3.24 billion reais in stocks in Sao Paulo yesterday, data compiled by Bloomberg show. That compares with a daily average this year of 6.56 billion reais through Dec. 15, according to data from the exchange.

To contact the reporter 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 papadopoulos@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.