Ibovespa futures declined as commodities retreated, dimming the outlook for Brazilian raw-material exporters.
Water utility Cia. de Saneamento de Minas Gerais may move after reporting quarterly earnings that missed analysts’ estimates. Oleo & Gas Participacoes SA, the oil producer founded by former billionaire Eike Batista, may be active after delaying the submission of a restructuring plan until Feb. 7.
Ibovespa futures contracts expiring in February dropped 0.2 percent to 47,210 at 9:21 a.m. in Sao Paulo. The real weakened 0.6 percent to 2.4238 per U.S. dollar. The Standard & Poor’s GSCI index of 24 raw materials declined 0.4 percent, extending its monthly drop to the biggest since October. Commodity producers account for 34 percent of the Ibovespa’s weighting.
The Ibovespa has tumbled 16 percent from a bull-market high on Oct. 22 as inflation exceeded policy makers’ target for a third consecutive year 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 was 5.8 billion reais yesterday, compared with a daily average of 6.2 billion reais this month, according to data from the exchange.