Bovespa-Index Futures Fall as Commodities Drop on Growth Outlook

Bovespa stock-index futures fell, signaling the stock gauge may retreat for a seventh day, as commodities declined on concern China’s property curb and contraction in the euro region will sap global growth.

Iron-ore mining company Vale SA slid in Frankfurt trading. Steelmaker Gerdau SA may be active after reporting profit in the fourth quarter missed analysts’ estimate.

Bovespa-index futures slipped 0.6 percent to 56,165 at 9:21 a.m. in Sao Paulo. The real weakened 0.2 percent to 1.9664 per dollar, depreciating for a second day. The Standard & Poor’s GSCI index of 24 raw materials fell 1 percent after the Chinese government demanded that local authorities restrain real estate speculation and euro-area services and manufacturing sectors contracted at a faster pace than economists forecast in February.

As almost all main commodities prices are declining today, “we expect the Brazilian exchange to retract today,” Banco Bradesco economists led by Octavio de Barros wrote in a note to clients. Materials producers account for 43 percent of the Bovespa gauge.

The Bovespa trades at 10.6 times analysts’ earnings estimates for the next four quarters, compared with 10.5 for the MSCI Emerging Markets Index, data compiled by Bloomberg show.

Trading volume of stocks in Sao Paulo was 8.2 billion reais ($4.2 billion) yesterday, which compares with a daily average of 7.5 billion reais this year, according to data compiled by the exchange.

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