Bovespa-Futures Fall as Commodity Drop Saps Exports

Bovespa-index futures dropped as lower commodities prices dimmed the outlook for Brazil’s raw- material exporters amid concern that flagging growth in the global economy will pare demand.

Plane builder Embraer SA (EMBR3) may move after saying it delivered 17 commercial planes and 12 executive jets in the first quarter. Oil-services provider Lupatech SA (LUPA3) may be active as it seeks to restructure its debt after missing an interest payment on $275 million of bonds this week, according to a person with direct knowledge of the plans.

Bovespa-index futures contracts expiring next week fell 0.5 percent to 55,050 at 9:06 a.m. in Sao Paulo. The real weakened 0.2 percent to 1.9798 per dollar. The Standard & Poor’s GSCI index of 24 raw materials lost 1 percent after economic data signaled slower economic growth.

Figures on April 15 will show China’s economy expanded at an 8 percent annual pace last quarter, slower than projected in February, according to economists surveyed by Bloomberg. The country is Brazil’s biggest trading partner. U.K. construction slid 7 percent in February from a year earlier, a report showed today.

The Bovespa (IBOV) has retreated 13 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 lost 7.5 percent over the same period.

Brazil’s benchmark equity gauge trades at 11.1 times analysts’ earnings estimates for the next four quarters, compared with 10.5 for the MSCI Emerging Markets Index (MXEF) of 21 developing nations’ equities, data compiled by Bloomberg show.

Trading volume for stocks in Sao Paulo stood at 6.33 billion ($3.2 billion) reais yesterday, which compares with a daily average of 7.43 billion reais this year through April 8, 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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