Bovespa Drops to Two-Month Low on Brazil Interest Rate Outlook
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The Bovespa index fell to a two-month low as homebuilder Brookfield Incorporacoes SA led losses by companies linked to domestic demand amid speculation that policy makers may raise borrowing costs to curb inflation.
Petroleo Brasileiro SA, Brazil’s state-controlled oil company known as Petrobras, retreated after Jefferies & Co. cut its recommendation to hold from buy. Iron-ore producer MMX Mineracao & Metalicos SA followed metals lower. Mining company Vale SA jumped after it agreed to sell gold mined in Brazil and Canada to Silver Wheaton Corp. for $1.9 billion.