Bovespa Index Falls Second Day as Commodity Prices Drop

The Bovespa index dropped for a second day as lower commodities prices dimmed the outlook for Brazil’s raw-material exporters after data showed U.S. retail sales unexpectedly declined.

Iron-ore producer Vale SA followed metals lower. Plane builder Embraer SA (EMBR3) fell after saying it delivered 29 jets in the first quarter, down from 34 one year earlier.

The Bovespa index fell 0.6 percent to 55,093.85 at 10:26 a.m. in Sao Paulo, paring this week’s advance to 0.1 percent. Fifty stocks declined today while 17 advanced. The real was little changed at 1.9753 per dollar. The Standard & Poor’s GSCI index of 24 raw materials lost 1.5 percent.

“Investors have been really optimistic about the outlook for the recovery in the U.S., but the retail sales figures today were disappointing,” Alvaro Bandeira, a partner at Orama Asset Management, said by phone from Rio de Janeiro. “Global investors seem to be in a bad mood after the numbers, and that hurts the Bovespa.”

Retail sales in the U.S. fell 0.4 percent in March, the most in nine months, Commerce Department figures showed today in Washington. The median forecast of 85 economists surveyed by Bloomberg called for an unchanged reading.

Vale lost 0.6 percent to 32.20 reais. Embraer declined 0.8 percent to 17.85 reais.

Oil company OGX Petroleo & Gas Participacoes SA rose 1.4 percent to 1.48 reais. MMX Mineracao & Metalicos SA (MMXM3) gained 1.5 percent to 1.99 reais.

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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