Bovespa Futures Fall on Global Growth Concern, Commodities Drop

Bovespa futures fell, a sign the stock gauge may extend a two-day drop, after reports that showed manufacturing contracted in China and Europe fueled global growth concern and dimmed the outlook for Brazilian exports.

Fibria Celulose SA (FIBR3), the world’s largest pulp producer, may be active after saying it plans to sell as many as 91.2 million new voting shares. Beef producer JBS SA (JBSS3) may move after fourth- quarter earnings trailed analysts’ estimates.

Bovespa futures slid 0.9 percent to 66,580 at 9:31 a.m. in Sao Paulo. The real weakened 0.4 percent to 1.8257 per U.S. dollar. The S&P GSCI Spot Index of 24 commodities fell 0.7 percent.

U.S.-index futures and European stocks declined after a preliminary measure of Chinese manufacturing fell to 48.1 this month, the lowest reading since November. A result below 50 indicates a contraction. European services and manufacturing output contracted more than forecast in March, a separate report showed.

“The Bovespa should track international markets, which were dragged down by the manufacturing data in China and in the euro zone,” Mauricio Nakahodo, senior economist at CM Capital Markets in Sao Paulo, wrote in a note to clients. “Commodities prices fell on concern global demand will weaken.”

JBS, the world’s biggest beef producer, reported net income of 25.6 million reais ($14 million) in the fourth quarter, according to a regulatory filing yesterday. That compares with the average estimate of 189.9 million reais in a Bloomberg survey of seven analysts.

Index Valuations

The Bovespa has advanced 18 percent this year after slumping 18 percent in 2011, buoyed by interest-rate cuts in Brazil, signs of growth in the U.S. and speculation Europe may be closer to solving its debt crisis. The gauge trades at 11 times analysts’ earnings estimates, which compares with a 10.7 ratio for MSCI Inc.’s measure of 21 developing nations’ equities, weekly data compiled by Bloomberg show.

Traders moved 5.3 billion reais in stocks in Sao Paulo yesterday, data compiled by Bloomberg show. That compares with a daily average of 7.19 billion reais this year through March 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

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