Ibovespa Futures Decline as Commodities Drop Amid China Concern

Ibovespa futures declined, after the stock index rose yesterday to a seven-month high, as lower commodities prices sapped the outlook for Brazil’s raw-material exports amid concern growth in China will falter.

Grupo BTG Pactual (BBTG11), the Brazilian investment bank led by billionaire Andre Esteves, may be active as a person familiar with the matter said it is preparing a bid for JPMorgan Chase & Co.’s physical commodities business. Fibria Celulose SA (FIBR3), the world’s largest pulp producer, may move after posting earnings that missed estimates in the third quarter.

Ibovespa futures contracts expiring in December sank 0.5 percent to 55,500 at 9:15 a.m. in Sao Paulo. The real slid 0.5 percent to 2.1835 per dollar. The Standard & Poor’s GSCI index of 24 raw materials lost 0.5 percent. Commodities producers account for about 39 percent of the Ibovespa’s weighting.

In China, the benchmark money-market rate jumped the most since July as the central bank refrained from adding funds to markets. The Asian country is Brazil’s biggest trading partner.

The Ibovespa entered a bull market Sept. 9 after rising 20 percent from this year’s low on July 3 through that day. The gauge is still down 13 percent in dollar terms this year, compared with a decline of 1.8 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume of stocks in Sao Paulo yesterday was 6.45 billion reais, compared with a daily average of 7.61 billion reais this year through Oct. 21, 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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