Ibovespa Futures Fall as China Output Offsets Inflation Report

Ibovespa futures dropped after three days of gains for the benchmark index as China’s reduced industrial production growth overshadowed slower-than-forecast inflation in Brazil.

Air carrier Gol Linhas Aereas Inteligentes SA may be active as Brazil’s civil aviation regulator started an investigation of the company’s flight delays and cancellations that may lead to a 2.5 million reais ($1.1 million) fine. Banco Bradesco SA (BBDC4) could move after proposing an additional payment of interest on equity to shareholders.

Ibovespa futures contracts expiring this month declined 0.1 percent to 51,175 at 9:20 a.m. in Sao Paulo. The real strengthened 0.2 percent to 2.3127 per U.S. dollar.

Chinese factory output growth slowed to 10 percent in November from a year earlier compared with the prior 10.3 percent advance, the national statistics bureau reported. The median forecast of analysts surveyed by Bloomberg was for a 10.1 percent increase.

In Brazil, the Getulio Vargas Foundation reported that wholesale, construction and consumer prices climbed 0.32 percent in the 10 days starting Nov. 21. The median forecast was for an increase of 0.41 percent.

Brazil’s benchmark 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 26 percent in dollar terms this year, compared with a decline of 4 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume of stocks in Sao Paulo was 4.59 billion reais yesterday, compared with a daily average of 7.48 billion reais this year through that day, according to data available from 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: Brendan Walsh at bwalsh8@bloomberg.net

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