Ibovespa Futures Rise Amid Bets Brazil to Limit Rate Increases

Ibovespa futures advanced as a central bank survey that showed economists cut Brazil’s growth forecasts for this year led traders to pare bets on higher borrowing costs, boosting the outlook for consumer stocks.

Steelmaker Usinas Siderurgicas de Minas Gerais SA may be active after Credit Suisse Group AG raised its recommendation to the equivalent of buy. Securities depository Cetip SA (CTIP3) - Mercados Organizados may move after naming Gilson Finkelsztain chief executive officer.

Ibovespa futures contracts expiring in August climbed 0.4 percent to 45,390 at 9:38 a.m. in Sao Paulo after earlier falling as much as 0.4 percent. The real strengthened 0.2 percent to 2.2635 per dollar.

Brazilian swap rates, a gauge of expectations for interest-rate moves, dropped on most contracts after a central bank survey showed economists covering Latin America’s largest economy cut the median forecast for 2013 growth to 2.31 percent from 2.34 percent.

“The economic activity indicators recently released do not point to a strong recovery in domestic activity in the past few months,” Credit Suisse Group AG’s analysts including Nilson Teixeira wrote in a note to clients.

The Standard & Poor’s GSCI index of 24 raw materials fell 0.6 percent after data showed China’s gross domestic product rose 7.5 percent in the second quarter from a year earlier, compared with the prior 7.7 percent increase.

The Ibovespa has slumped 23 percent year to date, the biggest plunge among the top 20 biggest equity markets tracked by Bloomberg. Brazil’s main equity gauge trades at 11.5 times analysts’ earnings estimates for the next four quarters, compared with 10.2 for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume for stocks in Sao Paulo was 5.2 billion reais on July 12, which compared with a daily average of 7.83 billion reais this year through July 11, 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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