Ibovespa Futures Rise on Optimism Levy Will Act to Revive GrowthDenyse Godoy
Ibovespa futures climbed amid optimism that the newly appointed Finance Minister Joaquim Levy will take steps to revive Brazil’s economy.
Meatpacker JBS SA may be active after the country’s securities regulator revoked the suspension of a planned share sale by the company’s frozen-dinners unit. Brewery Ambev SA may move after Valor Economico reported that Brazil plans to increase taxes on beer, mineral water and soda gradually.
Ibovespa futures contracts due this month advanced 0.7 percent to 52,135 at 9:38 a.m. in Sao Paulo. Brazil’s central bank will raise its target lending rate by a half-percentage point today to curb inflation, economists surveyed by Bloomberg and swap rates indicate.
Policy makers unexpectedly increased borrowing costs by 25 basis points to 11.25 percent in October after President Dilma Rousseff won her re-election bid.
Levy, a former treasury secretary who was appointed finance minister by Rousseff to restore investor confidence, pledged last week to adopt more rigorous fiscal discipline.
The Ibovespa has fallen 17 percent from this year’s high in September as Rousseff’s re-election Oct. 26 ended speculation that a victory for an opposition candidate would help to revive Latin America’s largest economy.
Trading volume of equities in Sao Paulo was 6.1 billion reais ($2.4 billion) yesterday, according to the exchange. That compares with a daily average of 7.2 billion reais this year.