Ibovespa Futures Decline as Manufacturing Growth Estimates Cut

Ibovespa futures fell as economists covering Brazil cut estimates for manufacturing growth for a second week, adding to concern the recovery in Latin America’s largest economy will falter.

Petroleo Brasileiro SA, the state-controlled oil company, might move after saying it rejected all bids for its Argentine assets. CCX Carvao da Colombia SA may be active after postponing the date for a tender in which controlling shareholder Eike Batista plans to buy all outstanding shares of the coal producer to July 17 from June 4.

Ibovespa futures contracts expiring in June declined 0.2 percent to 56,420 at 9:10 a.m. in Sao Paulo. The real was unchanged at 2.0515 per dollar, after depreciating for four consecutive weeks. Markets in the U.S. are closed for Capital Memorial Day holiday today.

Brazil’s industrial output will expand 2.43 percent this year and 3.10 percent in the next, according to the median estimate of economists surveyed by the central bank. They had forecast growth of 2.50 percent and 3.50 percent, respectively, a week earlier.

The Ibovespa has declined 7.5 percent this year, underperforming emerging markets including China, Russia and India, amid concern quickening inflation will curb the nation’s economic recovery. Brazil’s main equity index trades at 12.9 times analyst earnings estimates for the next four quarters, compared with a multiple of 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 7.43 billion reais ($3.62 billion) on May 24, compared with a daily average of 7.73 billion reais this year through May 23, 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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