Ibovespa Futures After Morgan Stanley Iron Ore Forecast

Brazil’s Ibovespa (IBOV) futures gained as speculation that central banks will take more steps to spur economic growth sent commodities higher, boosting the outlook for raw-material producers.

Natura Cosmeticos SA (NATU3), Brazil’s biggest cosmetics maker, may move after saying it plans to buy back as many as 2.5 million shares. Petrochemicals producer Braskem SA (BRKM5) may be active after JPMorgan Chase & Co. and Citigroup Inc. both raised their recommendations to the equivalent of buy.

Ibovespa futures contracts expiring in June added 0.1 percent to 55,075 at 9:04 a.m. in Sao Paulo. The real was little changed at 2.0228 per dollar. The Standard & Poor’s GSCI index of 24 raw materials rallied 0.4 percent as speculation mounted that the European Central Bank will cut its key interest rate to a record low next week. The Reserve Bank of Australia has more room to cut rates, Treasurer Wayne Swan said after inflation was slower than estimated.

The Ibovespa has retreated 13 percent from this year’s peak 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 7.8 percent over the same period.

Brazil’s benchmark equity gauge trades at 11.4 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 was 10.2 billion reais ($5.04 billion) yesterday, which compares with a daily average of 7.64 billion reais this year through April 22, 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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