Ibovespa Futures Rise as Retail Sales Gain Offsets Rate Increase

Jan. 16 (Bloomberg) --Ibovespa futures climbed as a report showing higher-than-forecast retail sales growth overshadowed the central bank’s signal that it will keep raising borrowing costs to curb inflation.

Petroleo Brasileiro SA (PETR4), the state-controlled oil company, may move after denying a newspaper report that it’s planning to raise fuel prices before June. Travel agency CVC Brasil Operadora e Agencia de Viagens SA may be active after it was rated buy in new coverage at Banco BTG Pactual SA.

Ibovespa futures contracts expiring in February advanced 0.6 percent to 50,600 at 9:36 a.m. in Sao Paulo. The real appreciated 0.2 percent to 2.3552 per U.S. dollar.

Brazil’s central bank raised the target lending rate yesterday to 10.5 percent from 10 percent, prompting analysts at JPMorgan Chase & Co. and Credit Suisse Group AG to forecast a 0.25 percentage point increase in February.

Retail sales rose 0.7 percent in November from a month earlier, the national statistics agency reported today. That compares with a median forecast of 0.4 percent growth from economists surveyed by Bloomberg.

The Ibovespa has tumbled 11 percent from a bull-market high on Oct. 22 as inflation exceeded policy makers’ target for a third consecutive year and concern mounted that increased government spending will lead to a reduction in the country’s credit rating.

Trading volume of stocks in Sao Paulo was 5.51 billion reais yesterday, according to data compiled by Bloomberg. That compares with a daily average of 7.42 billion reais in 2013, 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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