Bovespa Futures Rise on Commodities Gain, Brazil Growth Optimism

Bovespa futures rose, a sign the equity gauge may gain for the first time in five days, as higher commodities prices boosted the outlook for producers and a report showed Brazil’s economy contracted less than forecast.

Oil company Petroleo Brasileiro SA (PETR4) and iron-ore producer Vale SA (VALE5) advanced in Frankfurt trading, following crude and metals higher. Marfrig Alimentos SA (MRFG3), Latin America’s second- largest beef producer, may be active after reporting a net loss of 141.5 million reais ($78.3 million) in the fourth quarter, compared with a 158.1 million-real profit a year earlier.

Bovespa futures rose 0.9 percent to 66,715 at 9:39 a.m. in Sao Paulo. The real was little changed at 1.8092 per U.S. dollar.

“The Brazilian economy seems to be doing well,” Clodoir Vieira, an economist at brokerage Souza Barros Corretora, said by phone from Sao Paulo. “The main threat for this recovery is a deeper-than-expected slowdown in the world. Investors will keep watching economic data coming from abroad.”

In Brazil, the seasonally adjusted economic activity index, a proxy for gross domestic product, fell 0.13 percent in January from December, the central bank said in a report published on its website. Economists had expected a contraction of 0.5 percent, according to the median forecast in a Bloomberg survey of 26 analysts.

Commodities Climb

The Standard & Poor’s GSCI index of 24 raw materials climbed 0.3 percent and the MSCI All-Country World Index gained 0.2 percent after a report showed German business confidence unexpectedly increased in March.

Brazil’s benchmark equity measure has advanced 16 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 10.8 times analysts’ earnings estimates, which compares with a 10.6 ratio for MSCI Inc.’s measure of 21 developing nations’ equities, weekly data compiled by Bloomberg show.

Traders moved 6.18 billion reais in stocks in Sao Paulo on March 23, data compiled by Bloomberg show. That compares with a daily average of 7.19 billion reais this year through March 16, 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 at papadopoulos@bloomberg.net

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