Ibovespa Futures Fall as China Growth Concern Saps Commodities

Ibovespa futures fell as lower commodities prices dimmed the outlook for Brazilian exports amid concern growth may be slowing in China, the country’s top trading partner.

Meatpackers Minerva SA and JBS SA (JBSS3) may move after Banco Itau BBA SA cut its recommendation for both stocks to the equivalent of hold. BR Malls Participacoes SA (BRML3), Brazil’s biggest owner of shopping malls, may be active after saying it plans to buy back as many as 22.9 million shares.

Ibovespa futures contracts expiring in June lost 0.2 percent to 55,630 at 9:04 a.m. in Sao Paulo. The real was little changed at 2.0061 per dollar. The Standard & Poor’s GSCI index of 24 raw materials retreated 0.5 percent after a slump in China’s producer prices signaled growth may be weakening.

The producer price index slid 2.6 percent in April from a year earlier, figures from country’s statistics bureau showed today. That exceeds the 2.3 percent decline predicted by economists surveyed by Bloomberg.

The Ibovespa has lost 8.4 percent this year, the worst performer after Colombia’s IGBC index among 19 major emerging markets, according to data compiled by Bloomberg. Brazil’s benchmark equity gauge trades at 12.4 times analysts’ earnings estimates for the next four quarters, compared with 10.9 for the MSCI Emerging Markets Index of 21 developing nations’ equities, data compiled by Bloomberg show.

Trading volume for stocks in Sao Paulo was 7.81 billion reais ($3.89 billion) yesterday, compared with a daily average of 7.71 billion reais this year through April 30, 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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