Bovespa Futures Fall After Brazil Inflation, Commodities Drop

Bovespa-index futures dropped after consumer prices in Brazil’s biggest city increased more than forecast in January and a drop in commodities dimmed the outlook for raw-material producers.

Airline Gol Linhas Aereas Inteligentes SA may move after saying its board will discuss on Feb. 8 which banks will lead the initial public offering of its frequent-flier unit Smiles. OGX Petroleo & Gas Participacoes SA, the oil company controlled by billionaire Eike Batista, may be active after saying it will release an output report “early this month.”

Bovespa-index futures declined 0.4 percent to 60,095 at 9:06 a.m. in Sao Paulo. The real weakened 0.1 percent to 1.9894 per dollar. The Standard & Poor’s GSCI index of raw materials fell 0.4 percent, the euro retreated and Spanish government bonds declined as Prime Minister Mariano Rajoy faced opposition calls to resign.

Consumer prices in Sao Paulo as measured by the IPC-Fipe index rose 1.15 percent in January, a report today from the Foundation Economics Research Institute showed, which exceeded the median estimate of 1.06 percent among 13 economists surveyed by Bloomberg.

The Bovespa (IBOV) entered a bull market on Jan. 3 after rising 21 percent from last year’s low on June 5 as stimulus from central banks around the world eased concern that economic growth might miss expectations while borrowing costs at a record low in Brazil boosted equity demand. The index has since pared its advance to 15 percent.

Brazil’s benchmark equity gauge trades at 11.2 times analysts’ earnings estimates for the next four quarters, compared with 11 for MSCI’s measure of 21 developing nations’ equities, data compiled by Bloomberg show.

Trading volume for stocks in Sao Paulo was 7.21 billion reais ($3.63 billion) on Feb. 1, which compares with a daily average of 7.34 billion reais this year through Jan. 31, according to data compiled by the exchange.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at

To contact the editor responsible for this story: David Papadopoulos at

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