Ibovespa Futures Fall on Interest-Rate Outlook as Metals Decline

Ibovespa futures fell, after the stock index approached a bull market yesterday, as metals dropped and a smaller-than-expected drop in Brazil’s output added to speculation the central bank will keep raising borrowing costs.

Brewery Ambev SA, the Brazilian unit of Anheuser-Busch InBev NV, may be active as quarterly earnings trailed estimates. Cia. Brasileira de Distribuicao, the country’s largest retailer, may move after proposing to merge the e-commerce assets of its Via Varejo SA business with a unit of its parent, the French supermarkets operator Casino Guichard-Perrachon SA.

Ibovespa futures contracts due in June retreated 0.2 percent to 54,280 at 9:29 a.m. in Sao Paulo. The real was little changed at 2.2288 per dollar. The Bloomberg Base Metals 3-Month Price Commodity Index dropped 0.6 percent. Commodity producers account for about one-third of Ibovespa’s weighting, according to data compiled by Bloomberg.

Swap rates, a gauge of expectations for interest-rate moves, rose on most contracts after Brazil’s national statistics bureau reported that industrial production declined 0.9 percent in March from a year earlier. The median forecast of economists surveyed by Bloomberg was for a 3 percent drop.

The Ibovespa approached a bull market yesterday, surging 19.6 percent from this year’s low on March 14. Petroleo Brasileiro SA rallied on speculation a change in government after the October presidential election will reduce intervention in state-run companies.

Trading volume of stocks in Sao Paulo was 8.5 billion reais yesterday, compared with a daily average of 6.77 billion reais this year, according to data from the exchange.

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