Ibovespa Futures Decline as Commodity Drop Dims Export OutlookDenyse Godoy
Ibovespa futures retreated as a slump in commodity prices dimmed the outlook for Brazilian raw-material exporters.
Steelmaker Usinas Siderurgicas de Minas Gerais SA may move after Bank of America Corp. recommended selling the stock. Holding company Itausa-Investimentos Itau SA may be active as Moody’s Investors Service cut its credit outlook to negative.
Ibovespa futures contracts due in October declined 0.6 percent to 58,900 at 9:12 a.m. in Sao Paulo. The Standard & Poor’s GSCI Index of raw materials dropped 0.2 percent. Commodity producers account for about a third of the Ibovespa’s weighting, according to data compiled by Bloomberg.
Brazil’s benchmark equity index has jumped 30 percent from this year’s low in March on speculation a new government will act to bolster economic growth and reduce intervention.
Trading volume of equities in Sao Paulo was 8.9 billion reais yesterday, according to the exchange. That compares with a daily average of 6.7 billion reais this year.