Bovespa stock-index futures fell as commodities declined on concern Italy’s elections may reignite Europe’s debt crisis, curbing global growth and demand for Brazil’s exports.
State-controlled oil company Petroleo Brasileiro SA retreated in Frankfurt trading as oil reached a seven-week low in New York. Water utility Cia. de Saneamento de Minas Gerais may be active after reporting profit that beat estimates.
Bovespa-index futures slipped 0.4 percent to 56,520 at 9:08 a.m. in Sao Paulo. The real strengthened 0.1 percent to 1.9808 per dollar. The Standard & Poor’s GSCI index of 24 raw materials fell 0.91 percent after partial election results in Italy suggested former Prime Minister Silvio Berlusconi may have garnered enough support to deny victory to Pier Luigi Bersani, who campaigned to maintain the austerity program of outgoing Prime Minister Mario Monti.
“Investors all over the world are concerned today about the election in Italy as the results may affect the country’s debt renegotiation, creating more instability in a region that’s fighting to overcome a crisis,” Clodoir Vieira, an economist at Sao Paulo-based brokerage Souza Barros Corretora, said in a phone interview.
The Bovespa has lost 11 percent from this year’s peak on Jan. 3 while the MSCI BRIC Index of shares in Brazil, Russia, India and China slid 4.9 percent over the same period. Brazil’s benchmark equity gauge trades at 11.1 times analysts’ earnings estimates for the next four quarters, compared with 10.5 for the MSCI Emerging Markets Index of 21 developing nations’ equities, data compiled by Bloomberg shows.
Trading volume for stocks in Sao Paulo was 7.3 billion reais yesterday, compared with a daily average of 7.5 billion reais this year, according to data compiled by the exchange.