Ibovespa Futures Drop as Brazil Policy Makers Signal Higher Rate

Ibovespa futures fell after Brazil’s central bank signaled borrowing costs will keep rising.

Medical-services provider Fleury SA (FLRY3) may move after Bank of America Corp. cut its recommendation to the equivalent of sell from buy. Tractebel Energia SA (TBLE3), a unit of GDF Suez SA, may be active after saying it paid off debt with Brazil’s government.

Ibovespa futures contracts expiring in October fell 0.3 percent to 50,890 at 9:18 a.m. in Sao Paulo after earlier rising as much as 0.5 percent. The real weakened 0.2 percent to 2.3652 per dollar. The Standard & Poor’s GSCI index of 24 raw materials rose 0.2 percent as crude advanced after a U.S. Senate committee approved military strikes on Syria.

The central bank said in the minutes of its last policy meeting, released today, that it “understands that it’s appropriate to continue to adjust” monetary policy given concern about the outlook for inflation. Policy makers led by central bank President Alexandre Tombini last week lifted the target lending rate to 9 percent.

The Ibovespa has gained 15 percent from this year’s low on July 3 as higher commodities prices and a weaker real fueled a rally in raw-material exporters. Brazil’s benchmark gauge climbed 10 percent in dollar terms during the period, compared with an advance of 2.8 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume of stocks in Sao Paulo was 6.15 billion reais yesterday, compared with a daily average of 7.73 billion reais this year through Sept. 3, 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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