Bovespa-index futures fell as lower metal prices dimmed the outlook for producers amid concern a slowdown in China, Brazil’s top trading partner, will curb demand for commodities.
Card-payment processor Cielo SA (CIEL3) may be active after HSBC Holdings Plc lowered its recommendation to the equivalent of hold. Telefonica Brasil SA, the Brazilian unit of Spain’s largest phone company, may move after naming Alberto Horcajo Aguirre chief financial officer.
Bovespa-index futures tumbled 0.7 percent to 56,730 at 9:06 a.m. in Sao Paulo. The real weakened 0.2 percent to 1.9839 per dollar, depreciating for a third day. The Bloomberg Base Metals 3-Month Price Commodity Index fell for a fourth day, retreating 0.3 percent.
Chinese stocks fell after the world’s largest emerging market called for higher down payments and interest rates for second-home mortgages in cities with “excessively fast” price gains and ordered stricter enforcement of taxes on sales as authorities step up a three-year campaign to cool the property market.
Separately, a report from the Beijing-based National Bureau of Statistics and China Federation of Logistics and Purchasing showed the country’s services industries expanded last month at the slowest pace since September
In Brazil, consumer prices as measured by the IPC-Fipe index in Sao Paulo increased 0.22 percent last month after rising 1.15 percent in January, a report today from the Foundation Economics Research Institute showed. That compares with a median estimate of 0.33 percent from 12 economists in a Bloomberg survey.
The Bovespa (IBOV) has dropped 10 percent from this year’s high on Jan. 3 amid concern accelerating inflation may curb Brazil’s economic recovery and the government’s interventionist policies will hurt profits in industries including utilities and energy. The MSCI BRIC Index (MXBRIC) of shares in Brazil, Russia, India and China has slid 5.2 percent over the same period.
Brazil’s benchmark equity gauge trades at 11.7 times analysts’ earnings estimates for the next four quarters, compared with 10.4 for the MSCI Emerging Markets Index (MXEF) of 21 developing nations’ equities, data compiled by Bloomberg show.
Trading volume for stocks in Sao Paulo was 7.27 billion reais ($3.6 billion) on Mar. 1, which compares with a daily average of 7.57 billion reais this year through Feb. 28, according to data compiled by the exchange.
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