Ibovespa Futures Rise as Retail Reduces Wagers on Higher Rates

Ibovespa futures advanced as traders pared bets on higher borrowing costs after a report showed Brazil’s retail sales rose less than forecast.

Medical-diagnostics firms Diagnosticos da America SA and Fleury SA (FLRY3) may be active after Morgan Stanley cut its recommendation on both stocks to the equivalent of hold. Card-payment processor Cielo SA (CIEL3) may move after saying it plans to buy back as many as 4.4 million shares in a year.

Ibovespa futures contracts expiring this month rose 0.2 percent to 50,175 at 9:25 a.m. in Sao Paulo. The real strengthened 0.2 percent to 2.3369 per U.S. dollar. Brazilian swap rates on most contracts dropped after the national statistics agency said retail sales increased 0.2 percent in October, which compared with the median forecast of 0.5 percent among economists surveyed by Bloomberg.

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 28 percent in dollar terms this year, compared with a decline of 5.9 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.

Trading volume of stocks in Sao Paulo was 5.24 billion reais yesterday, compared with a daily average of 7.46 billion reais this year, according to 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: Brendan Walsh at bwalsh8@bloomberg.net

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