Ibovespa Futures Drop as Brazil’s Central Bank Cuts GDP Forecast

Ibovespa futures fell, as the equity gauge headed for its first weekly gain in five weeks, after Brazil’s central bank cut its 2013 economic growth forecast.

Education company Anhanguera Educacional Participacoes SA (AEDU3) may move after Banco Santander SA raised its recommendation on the stock to buy. Usinas Siderurgicas de Minas Gerais SA may be active as a person familiar with the situation who asked not to be named said the company seeks to boost steel prices in Brazil by 7 percent.

Ibovespa futures contracts expiring in February declined 0.5 percent to 51,870 at 9:22 a.m. in Sao Paulo. The stock benchmark is up 3.2 percent this week. The real weakened 0.6 percent to 2.3714 per U.S. dollar today.

The central bank said in its quarterly report published today that Brazil’s gross domestic product will grow 2.3 percent this year, down from a prior estimate of 2.5 percent.

The Ibovespa has declined 26 percent in dollar terms this year, the worst performance among the 20 biggest equity indexes tracked by Bloomberg. The MSCI Emerging Markets Index has dropped 6.4 percent.

Trading volume of stocks in Sao Paulo was 5.2 billion reais yesterday, compared with a daily average of 7.48 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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