Ibovespa Futures Decline on Concern Metals Drop to Hurt Exports

Ibovespa futures dropped as lower metal prices dimmed the outlook for raw-material exports amid concern growth is slowing in China, Brazil’s top trading partner.

Power utility Cia. Energetica de Minas Gerais may move after posting first-quarter earnings that topped analysts’ estimates. Steelmaker Cia. Siderurgica Nacional SA may be active as its quarterly results trailed forecasts.

Ibovespa futures contracts expiring in June slipped 0.2 percent to 54,595 at 9:17 a.m. in Sao Paulo. The real weakened 0.3 percent to 2.0295 per dollar. The Bloomberg Base Metals 3-Month Price Commodity Index dropped as much as 0.8 percent after a report showed foreign direct investment in China rose 0.4 percent from a year earlier in April, below the 6.2 percent projection of analysts surveyed by Bloomberg.

In Brazil, the IGP-10 (IBREGP1M) inflation index, which monitors wholesale, consumer and construction costs, fell 0.09 percent from April 11 to May 10, the Getulio Vargas Foundation reported today. The median estimate of 27 economists in a Bloomberg survey was for a 0.06 percent decrease. A separate report from the foundation showed consumer prices as measured by the IPC-S index slowed more than forecast in the month ending in May 15.

The Ibovespa has lost 9.9 percent this year, the worst performer among 19 major emerging markets, according to data compiled by Bloomberg. Brazil’s main equity index trades at 12.3 times analysts’ earnings estimates for the next four quarters, compared with a 10.9 multiple for the MSCI Emerging Markets Index of 21 developing nations’ equities, data compiled by Bloomberg show.

Trading volume for stocks in Sao Paulo was 8.08 billion reais ($3.99 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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