Ibovespa futures fell on speculation that the benchmark stock index’s rally to a six-month high was excessive amid a slowdown of Latin America’s largest economy.
Real-estate developer BR Properties SA may be active after Moody’s Investors Service revised the company’s credit rating outlook to negative. Truck manufacturer Marcopolo SA may move as quarterly profit exceeded estimates.
Ibovespa futures contracts due in June declined 0.4 percent to 57,880 at 9:20 a.m. in Sao Paulo. The gauge entered a bull market April 24 after rising more than 20 percent from a January low on bets government spending cuts and the release of Petroleo Brasileiro SA’s results would be enough for Brazil to avoid a credit rating downgrade. Brazil’s economy will shrink 1.18 percent this year, which would be the most since 1990, according a central bank survey of analysts published Monday.
“All the fiscal measures are important, but they may deeepen the economic slowdown,” Luiz Roberto Monteiro, a trader at brokerage firm Renascenca DTVM in Sao Paulo, said in a phone interview. “We should have a contraction this year, and companies’ results will suffer.”
Trading volume of equities in Sao Paulo was 7.5 billion reais ($2.43 billion) on Monday, according to the exchange. That compares with a daily average of 6.96 billion reais this year.