Ibovespa Futures Fall as Fed Outlook Offsets Inflation Report

Ibovespa futures declined as concern that a U.S. stronger economy will spur the Federal Reserve to reduce bond purchases sooner than expected overshadowed slower-than-forecast inflation in Brazil.

Toll-road manager Arteris SA (ARTR3), frequent-flier program operator Multiplus SA (MPLU3) and energy company Eneva SA (ENEV3) may be active after being removed from the MSCI Brazil index. For-profit educator Estacio Participacoes SA (ESTC3) may move after earnings beat analysts’ estimates for a third straight quarter.

Ibovespa futures contracts expiring in December dropped 0.2 percent to 52,740 at 9:23 a.m. in Sao Paulo. The real climbed 0.1 percent to 2.3032 per dollar.

A U.S. Commerce Department report yesterday showed that the world’s largest economy grew at a better-than-estimated 2.8 percent annual rate in the third quarter. Today’s payroll data, scheduled to be released at 8:30 a.m. Washington time, may show that U.S. employers added fewer workers in October.

In Brazil, the Getulio Vargas Foundation said wholesale, construction and consumer prices climbed 0.30 percent in the 10 days starting Oct. 21. The median forecast of 12 economists surveyed by Bloomberg was for an increase of 0.59 percent.

Brazil’s main equity index 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 23 percent in dollar terms this year, compared with a decline of 5 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume of stocks in Sao Paulo was 8.47 billion reais ($3.68 billion) yesterday, compared with a daily average of 7.56 billion reais this year through the same day, according to data compiled by the exchange.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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