Ibovespa Futures Decline as Commodities Drop Dims Export Outlook

Ibovespa futures dropped as concern that the global economy is weakening pushed commodities lower, dimming the outlook for Brazilian raw-material producers.

Lender Itau Unibanco Holding SA may move after it agreed to buy Citigroup Inc.’s credit-card unit in Brazil for 2.77 billion reais ($1.37 billion). JBS SA (JBSS3), the world’s biggest beef producer, may be active after posting first-quarter earnings that trailed estimates.

Ibovespa futures contracts expiring in June slipped 0.2 percent to 54,460 at 9:10 a.m. in Sao Paulo. The real was little changed at 2.0214 per dollar while the Standard & Poor’s GSCI index of 24 raw materials fell 0.7 percent.

Commodities dropped as the German economy expanded less than forecast in the first quarter, statistics showed today. Bank of America Merrill Lynch cut its estimate for growth this year in China, following JPMorgan Chase & Co. Wholesale prices in the U.S. dropped in April by the most in three years and manufacturing in the New York region unexpectedly shrank in May as factories received fewer orders and sales stagnated.

Brazil’s benchmark equity gauge has lost 10 percent this year, the worst performer among 19 major emerging markets, according to data compiled by Bloomberg. The Ibovespa trades at 12.1 times analysts’ earnings estimates for the next four quarters, compared with 10.8 for the MSCI Emerging Markets Index of 21 developing nations’ equities, data compiled by Bloomberg show.

Trading volume for stocks in Sao Paulo was 8.05 billion reais 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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