Ibovespa futures declined as commodities slid after a report indicated that manufacturing in China, Brazil’s biggest trading partner, contracted for a fourth consecutive month.
Drugstore chain Raia Drogasil SA may move after Banco Itau BBA SA withdrew a buy recommendation for the stock. Homebuilder MRV Engenharia e Participacoes SA may be active as sales increased 40 percent in the first quarter from a year earlier.
Ibovespa futures contracts due in June lost 0.6 percent to 52,280 at 9:16 a.m. in Sao Paulo. The real weakened 0.2 percent to 2.2427 per U.S. dollar. The Standard & Poor’s GSCI index of 24 raw materials fell 0.1 percent. Commodity producers account for about one-third of the Ibovespa’s weighting.
A preliminary reading of the purchasing managers’ index from HSBC Holdings Plc and Markit Economics, a gauge of manufacturing activity in China, was 48.3 in April. A level below 50 indicates contraction.
Trading volume of stocks in Sao Paulo yesterday was 10.48 billion reais, compared with a daily average of 6.76 billion reais this year, according to data from the exchange.