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Ibovespa Futures Tumble as Brazil Retail Sales Unexpectedly Drop

Ibovespa futures declined after a report that showed retail sales in Brazil unexpectedly declined in December added to concern that growth is faltering in Latin America’s largest economy.

Banco do Brasil SA, the nation’s biggest bank by assets, may be active after posting fourth-quarter earnings that missed analysts’ estimates. Embraer SA (EMBR3) may move after winning a plane order from India’s Air Costa. Itau Unibanco Holding SA (ITUB4) may be active after Banco Bradesco SA’s brokerage raised its recommendation on the lender to the equivalent of buy.

Ibovespa futures contracts expiring in April sank 1.3 percent to 48,210 at 9:24 a.m. in Sao Paulo. The real depreciated 0.3 percent to 2.4321 per U.S. dollar. The Standard & Poor’s GSCI index of 24 raw materials retreated 0.3 percent.

Brazil’s retail sales fell 0.2 percent in December from a month earlier, the national statistics agency reported today. The median forecast of economists surveyed by Bloomberg was for 0.3 percent growth.

The Ibovespa has tumbled 15 percent from a bull-market high on Oct. 22 as inflation exceeded policy makers’ target and concern mounted that higher government spending will lead to a reduction in the country’s credit rating.

Trading volume of stocks in Sao Paulo yesterday was 12.2 billion reais, compared with a daily average of 6.55 billion reais this year, according to data from the exchange.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at

To contact the editor responsible for this story: Brendan Walsh at

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