Brazil’s Ibovespa Adds to Weekly Advance as Usiminas Rallies

The Ibovespa rose, capping its first weekly gain in three as commodity producers including Usinas Siderurgicas de Minas Gerais SA rallied after data from the U.S. to China bolstered the outlook for global growth.

Steelmaker Cia. Siderurgica Nacional SA posted its biggest weekly jump since December while iron-ore producer Vale SA capped a third week of gains. For-profit college operator Kroton Educacional SA climbed after saying it has received bids for its Uniasselvi unit.

The Ibovespa climbed 0.3 percent to 54,055.90 at the close of trading in Sao Paulo, pushing a weekly gain to 1.7 percent. U.S. employers added more workers than forecast in June and the unemployment rate dropped to 6.1 percent, Labor Department figures showed yesterday, adding to global optimism after data on July 1 showed China’s manufacturing expanded in June at the fastest pace this year.

“The economic figures this week were better, especially the payroll number,” Ari Santos, an equity trading manager at H. Commcor in Sao Paulo, said by phone. “Commodity producers such as Vale, which are so dependent on China, should benefit if the economy there does well.”

Trading volume on the index was 60 percent lower than the average in the past month. The U.S. stock market was closed for a holiday and the BM&FBovespa ended today’s session 2 1/2 hours earlier than usual ahead of Brazil’s World Cup game versus Colombia.

Usiminas rose 1.2 percent to 8.44 reais and is up 11 percent this week, leading gains on the benchmark gauge. Competitor CSN fell 0.2 percent to 10.11 reais today, trimming a weekly gain to 8 percent. Vale added 0.3 percent today, pushing the advance this week to 6.3 percent.

Kroton rose 0.5 percent to 59.86 reais.

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

Before it's here, it's on the Bloomberg Terminal.