Ibovespa Futures Climb as Lower House Approves Labor Benefit Cut

Ibovespa futures rose on speculation Brazil will be able to restore growth after the lower house approved labor benefit cuts proposed by Finance Minister Joaquim Levy to shore up public accounts.

Consumer goods and pharmaceutical products maker Hypermarcas SA may be active after saying it hired investment banks to analyze strategic alternatives for its diaper business. Aliansce Shopping Centers may move as quarterly sales trailed analysts’ estimates.

Ibovespa futures contracts due in June added 0.4 percent to 57,985 at 9:19 a.m. in Sao Paulo. Lawmakers on Wednesday passed a modified version of a bill that provides less savings than Levy had originally wanted. The legislation makes it harder for Brazilians to access unemployment insurance.

“It’s very positive that the government was able to approve this bill,” Alexandre Povoa, who helps oversee $100 million at Canepa Asset Management, said by phone from Rio de Janeiro. “Any indication that government spending will be more stable is important for the market.”

Trading volume of equities in Sao Paulo was 9.3 billion reais ($3.1 billion) on Wednesday, according to the exchange. That compares with a daily average of 7 billion reais this year.

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