Ibovespa Rises as Signs of Global Growth Bolster Equity Outlook

The Ibovespa rose the most among major equity gauges in the Americas as service industries grew faster than forecast in the U.S., Brazil’s second-largest trading partner, bolstering the outlook for the stock market.

Iron-ore producer Vale SA advanced as a weaker real boosted the prospects for Brazil’s exports. Hypermarcas SA (HYPE3) rose as a gauge of the consumer-health products manufacturer’s second-quarter profit exceeded analysts’ estimates.

The Ibovespa added 0.3 percent 48,622.73 at 11:44 a.m. in Sao Paulo. Forty-five stocks rose on the index while 26 fell. The real weakened 0.6 percent to 2.3009 per U.S. dollar. In the U.S., the Institute for Supply Management’s non-manufacturing index increased to 56 in July from 52.2 the prior month, a report from the Tempe, Arizona-based group showed today.

“If you look at the world economy, things seem to be picking up, especially in the U.S., which could give a little hand to the Brazilian equity market,” Pedro Galdi, the chief strategist at Sao Paulo-based brokerage SLW Corretora, said in a phone interview.

Vale climbed 1.4 percent to 28.80 reais. Hypermarcas jumped 3 percent to 17.08 reais.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net

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