Ibovespa Futures Fall as Brazil Growth Slows, Commodities Drop

Ibovespa futures fell as data showed the Brazilian economy slowed more than estimated in the first quarter and as a drop in commodities dimmed the outlook for the country’s raw-materials exporters.

Mining company Vale SA may be active after iron ore declined to the lowest level in 20 months. Phone carrier Telefonica Brasil SA may move as regulators said it must cut prices for basic fixed-line service by 24 percent.

Ibovespa futures contracts due in June dropped 0.8 percent to 52,020 at 9:26 a.m. in Sao Paulo. The real lost 0.2 percent to 2.229 per dollar. The Standard & Poor’s GSCI Index of 24 raw materials retreated 0.4 percent. Commodity producers account for about one-third of the Ibvovespa’s weighting.

Brazil’s gross domestic product increased 1.9 percent in the first quarter of this year from the same period in 2013, trailing the median estimate of analysts surveyed by Bloomberg for 2 percent growth. The economy expanded 0.2 percent from the prior quarter, half the pace of the previous three months.

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 4.5 billion reais yesterday, compared with a daily average of 6.6 billion reais this year, according to data from the exchange.

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