Ibovespa Futures Drop After Metals Decline, Brazil Retail Report

Ibovespa futures dropped, after the stock gauge yesterday fell the most in three weeks, as lower metal prices dimmed the outlook for producers and Brazil’s retail sales growth trailed forecasts.

State-controlled oil company Petroleo Brasileiro SA (PETR4) may move after it agreed to sell assets in Peru to PetroChina Co. for $2.6 billion. Banco do Brasil SA may be active after JPMorgan Chase & Co. lowered its recommendation on the bank to the equivalent of hold.

Ibovespa futures contracts expiring in December dropped 0.4 percent to 51,670 at 9:16 a.m. in Sao Paulo. The real climbed 0.1 percent to 2.3289 per U.S. dollar. The Bloomberg Base Metals 3-Month Price Commodity Index declined 0.8 percent on speculation the Federal Reserve will start reducing stimulus earlier than expected.

In Brazil, retail sales climbed 4.1 percent in September from a year earlier, the national statistics agency said today. The median forecast of economists surveyed by Bloomberg was for an increase of 4.6 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 has since pared gains to 15 percent.

Trading volume of stocks in Sao Paulo was 7.21 billion reais yesterday, compared with a daily average of 7.61 billion reais this year through Oct. 22, according to the latest data available from 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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