Bovespa Futures Fall as Fed Signal Combines With Output Slump

Bovespa-index futures fell, snapping a three-day gain, as Brazil’s industrial production dropped and concern the U.S. may reduce economic stimulus measures drove commodities lower.

Iron-ore producer Vale SA (VALE), which has the biggest weighting on the Bovespa, declined in Frankfurt trading. Steelmaker Cia. Siderurgica Nacional (SID) SA may move after Bank of America Corp. said it raised prices for some products.

Bovespa futures slid 0.3 percent to 63,395 at 9:30 a.m. in Sao Paulo after the index advanced 4.6 percent in the previous three sessions. The real was little changed at 2.0460 per dollar. The Standard & Poor’s GSCI index of 24 raw materials tumbled 1 percent and oil fell for the second day in London.

Stocks fell worldwide after members of the U.S. Federal Open Market Committee said they will probably end their $85 billion monthly bond purchases sometime in 2013, according to minutes of its latest meeting released yesterday.

“All sorts of commodities are falling today” after the Fed minutes, Banco Bradesco (BBD) economists led by Octavio de Barros wrote in a note to clients today. “We expect a little decline in the Brazilian exchange as well.”

Brazil’s industrial output fell 0.6 percent in November from a month earlier, the national statistics agency said today in Rio de Janeiro. Economists had forecast output to decrease 0.9 percent from the previous month, according to the median forecast from 36 analysts surveyed by Bloomberg. Output fell 1 percent from the year before.

The Bovespa climbed 7.4 percent in 2012 in its biggest yearly rally since 2009 as stimulus from central banks around the world eased economic concern and borrowing costs at a record low in Brazil boosted equity demand.

Trading volume was 7.2 billion reais ($3.5 billion) in stocks in Sao Paulo yesterday, according to data compiled by the exchange.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: s 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.