Brazilian Stocks Plunge as Global Rate Cuts Fail to Ease Crisis

By Alexander Ragir

Oct. 8 (Bloomberg) -- Brazilian stocks plunged for a fifth day after an unprecedented coordinated effort by six central banks to cut interest rates failed to ease concern the credit crisis will bring global growth to a halt.

Cia. Vale do Rio Doce led a drop in metals producers after copper and nickel prices tumbled on concern demand for commodities is waning. Petroleo Brasileiro SA, Brazil's state- controlled oil company, fell as oil dropped below $88 a barrel.

The Bovespa index slid 1,972.59, or 4.9 percent, to 38,167.26 at 9:14 a.m. New York time. The index has lost 24 percent over the past five days. BM&FBovespa MidLarge Cap index fell 5.6 percent, while the BM&FBovespa Small Cap index retreated 3.4 percent.

The Federal Reserve, European Central Bank, Bank of England, Bank of Canada and Sweden's Riksbank each cut their benchmark rates by half a percentage point to shore up confidence and global growth.

U.S. stock-index futures tumbled.

Vale, the world's biggest iron ore miner, dropped 6.4 percent to 24.35 reais. Copper futures fell 5.6 percent in New York. Nickel futures dropped 4.2 percent in London.

Petrobras sank 7 percent to 26.31 reais.

Crude oil for November delivery slid 2.4 percent to $87.91 a barrel in New York.

To contact the reporter on this story: Alexander Ragir in Rio de Janeiro at aragir@bloomberg.net;