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Bovespa-Futures Rise as Oil Gain Boosts Producers Outlook

Bovespa-index futures declined as economists lowered forecasts for Brazil’s manufacturing output growth this year and next, adding to concern that recovery in Latin America’s largest economy is faltering.

Banco Bradesco SA (BBDC4), Brazil’s second-biggest bank by market value, may move after reporting first-quarter sales that missed analysts’ estimates. Kroton Educacional SA may be active after saying it agreed to buy competitor Anhanguera Educacional Participacoes SA (AEDU3) to form the world’s largest education company.

Bovespa-index futures contracts expiring in June dropped 0.2 percent to 54,000 at 9:20 a.m. in Sao Paulo. The real was unchanged at 2.0111 per dollar.

Industrial output will grow 2.86 percent this year, according to the median forecast among 100 economists surveyed by Brazil’s central bank. That compares with an estimate of 3 percent a week earlier. Expansion in 2013 is seen at 3.75 percent, down from 3.8 percent, the survey showed.

The Bovespa (IBOV) has retreated 15 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 8.6 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 10.4 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 6.13 billion reais ($3.05 billion) on April 19, which compares with a daily average of 7.69 billion reais this year through April 17, 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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