Bovespa Stock-Index Futures Rise as Higher Commodities Lift Vale

Bovespa-index futures rose as higher commodities prices boosted the outlook for Brazilian raw- material producers amid optimism that U.S. lawmakers will agree on a budget.

Iron-ore producer Vale SA advanced in Frankfurt trading. Petroleo Brasileiro SA, Brazil’s state-controlled oil company, may move after Moody’s Investors Service lowered the outlook on its foreign currency bonds to negative from stable. Sugar and ethanol producer Sao Martinho SA may be active after saying it paid 199.6 million reais to Biosev SA for Usina Sao Carlos assets.

Bovespa-index futures climbed 0.5 percent to 60,330 at 9:06 a.m. in Sao Paulo. The real strengthened 0.1 percent to 2.0967 per U.S. dollar. The Standard & Poor’s GSCI index of 24 raw materials added 0.2 percent.

U.S. President Barack Obama and House Speaker John Boehner are negotiating to avert more than $600 billion in tax increases and spending cuts set to start in January, known as the fiscal cliff. Obama yesterday made a new offer that would raise taxes by $1.2 trillion and cut $1.22 trillion in spending, according to a person familiar with the talks.

The Bovespa (IBOV) index has climbed 14 percent from this year’s low in June as stimulus from central banks around the world eased concerns about an economic slowdown, while record-low benchmark lending rates has pushed some investors to move into stocks from fixed-income.

The index trades at 11.1 times analysts’ earnings estimates for the next four quarters, in line with the ratio for MSCI Inc.’s measure of 21 developing nations’ equities, data compiled by Bloomberg show.

Trading volume was 11.9 billion reais in stocks in Sao Paulo yesterday. That compares with a daily average of 7.26 billion reais this year through Dec. 14, according to data compiled by 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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