Ibovespa Futures Decline on Fed After Three Days of Index Gains

Ibovespa futures dropped, after the index climbed for three straight days, as investors awaited evidence indicating when the Federal Reserve will begin curtailing monetary stimulus.

Clothing retailer Marisa Lojas SA (AMAR3) may be active as Bank of America Corp. recommended selling the stock after profit missed estimates in the third quarter. Electronics retailer Via Varejo SA (VVAR3) may move after divesting 18 stores to comply with a request from Brazil’s antitrust regulator.

Ibovespa futures contracts expiring in December retreated 0.7 percent to 54,150 at 9:25 a.m. in Sao Paulo. The benchmark index advanced 4.8 percent in the three past days to the highest level since Nov. 4.

“After those gains, investors will take some time to review stocks’ valuation,” Felipe Rocha, an analyst at brokerage firm Omar Camargo in Curitiba, Brazil, said in a phone interview. “Everybody is looking for signs of when the Fed will trim stimulus measures.”

The U.S. central bank will release minutes of its October policy meeting tomorrow, the Commerce Department will publish retail sales data and the Labor Department will deliver a report on inflation.

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 20 percent this year in dollar terms, compared with a decline of 2.6 percent for the MSCI Emerging Markets Index of developing nations’ equities.

Trading volume of stocks in Sao Paulo was 10.5 billion reais yesterday, compared with a daily average of 7.56 billion reais this year through the same date, 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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