Ibovespa Futures Drop as Economists Cut Brazil Growth Estimates

Ibovespa futures declined as economists forecast Brazil will post zero growth this year, dimming the outlook for companies that depend on domestic demand.

State-controlled oil producer Petroleo Brasileiro SA may move as Credit Suisse Group AG recommended selling the stock after the company’s board on Friday approved President Dilma Rousseff’s appointment of Aldemir Bendine as new chief executive. Hypermarcas SA, a manufacturer of consumer goods including diapers and over-the-counter drugs, may be active as quarterly sales beat estimates.

Ibovespa futures contracts due this month fell 0.9 percent to 48,380 at 9:26 a.m. in Sao Paulo. Analysts reduced their estimates for Brazil’s economic growth in 2015 to zero from 0.03 percent, according to a weekly survey of about 100 economists by the central bank.

“That’s a very discouraging scenario for companies,” Jason Vieira, an analyst at the consultancy firm XInfinity Invest, said in a phone interview from Sao Paulo. “There’s no news or indicator in sight that could improve the outlook for 2015. Investors and business people are now thinking of what to do in 2016.”

Options on Brazilian stocks expire today. The Ibovespa entered a bear market Dec. 12 after falling 22 percent from last year’s high in September. Trading volume of equities in Sao Paulo was 7.3 billion reais ($2.6 billion) Friday, according to the exchange. That compares with a daily average of 6.5 billion reais this year.

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