The Bovespa index declined as a drop in commodities prices dimmed the outlook for Brazilian producers amid concern a worsening debt crisis in Europe will hurt global growth.
Vale SA (VALE5) followed metals prices lower, contributing the most to the gauge’s drop. The MSCI Brazil/Materials index fell the most among 10 industry groups. Gol Linhas Aereas Inteligentes SA (GOLL4), Brazil’s second-biggest airline by market value, slid after saying its occupancy rate declined 4.5 percentage points to 64.3 percent in March.
The Bovespa sank 0.5 percent to 61,783.25 at 11:16 a.m. in Sao Paulo. Forty-four stocks tumbled on the gauge while 22 advanced. The real was little changed at 1.8383 per U.S. dollar. The Standard & Poor’s GSCI index of 24 raw materials fell 1.1 percent.
“What we’re seeing now is increasing risk aversion in the global markets, sparked by concern about Europe’s debt and about the state of the economy in Asia,” Renato Bandeira de Mello, head of equity trading at Futura Corretora, said by phone from Sao Paulo. “It’s hard for the Bovespa to perform well in such scenario.”
Commodities fell while yields on Spanish bonds climbed as a government minister called on the European Central Bank to buy the nation’s debt to stem the financial-market turmoil and after South Korea’s central bank said the country will expand 3.5 percent in 2012, compared with 3.7 percent estimated in December.
Vale dropped 1.2 percent to 41.42 reais. Gol slid 2.1 percent to 10.29 reais.
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