Ibovespa Futures Decline Amid Slower Economic Growth Estimates

Ibovespa futures fell as economists covering Brazil cut their 2014 growth forecast to the slowest ever, adding to concern corporate earnings will falter.

Highway manager CCR SA may be active after newspaper Folha de S.Paulo reported that the state of Sao Paulo is seeking toll operators including the company to reimburse it by as much as 900 million reais ($406.3 million). Banco Santander Brasil SA, the Brazilian unit of Spain’s biggest bank, may move as magazine Veja reported that it’s negotiating to buy Banco Bonsucesso.

Ibovespa futures contracts due in June retreated 0.6 percent to 54,170 at 9:14 a.m. in Sao Paulo. The real lost 0.1 percent to 2.2165 per dollar.

Analysts surveyed by the central bank lowered their growth forecast for Latin America’s biggest economy this year to 1.62 percent from 1.69 percent, according to the median estimates in a May 16 central bank survey of about 100 analysts published today. Inflation will quicken to 6.43 percent by year-end, the survey showed.

The Ibovespa entered a bull market on May 7, surging 20 percent from this year’s low on March 14, as Petroleo Brasileiro SA rallied on speculation a change in government will reduce intervention in state-run companies.

Trading volume of stocks in Sao Paulo was 6.25 billion reais on May 16, compared with a daily average of 6.7 billion reais this year, according to data from the exchange.

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