By Alexander Ragir
Feb. 27 (Bloomberg) -- Brazil’s Bovespa stock-index futures retreated, indicating the gauge will slip for a fourth day, as a deepening financial crisis raised concern demand for exports will wane.
Banco Itau Holding Financeira SA, Latin America’s biggest bank, dropped 1.9 percent in trading in Germany after shares of Citigroup Inc. sank as much as 42 percent. American depositary receipts of Petroleo Brasileiro SA, Brazil’s state-controlled oil company, retreated 2.2 percent as oil prices dropped. Cia. Vale do Rio Doce, the world’s biggest iron ore miner, slumped 1.1 percent in New York as metals prices retreated.
Bovespa futures sank 2.2 percent to 38,150 at 8:11 a.m. New York time.
Petrobras’ ADRs fell 2.2 percent to $27.18 in trading before markets opened in New York. Crude oil slid 4 percent, snapping a three-day rally on signs the global recession is deepening.
The U.S. economy contracted at an annual pace of 5.4 percent in the last quarter, according to the median estimate in a Bloomberg survey. The Gross Domestic Product report is scheduled to be released at 8:30 a.m. New York time.
Vale fell 14 cents to $12.80. The Bloomberg Base Metals 3- Month Price Commodity Index dropped 2.7 percent to 108.76.
Itau fell 42 centavos to 22.19 reais. Citigroup tumbled after the U.S. government raised its stake in the bank in the third attempt to bail out what was once the world’s biggest financial institution.
The Bovespa has dropped 2.9 percent this month as commodities, which make up nearly a third of Brazil’s exports, plunged on concern a deepening global economic recession will crimp demand. The Reuters Jefferies Commodities Index fell 3.5 percent so far this month.
The Bovespa gained 1.7 percent for the year on speculation government efforts to support growth and falling interest rates will help the economy expand and increase demand for equity.
To contact the reporter on this story: Alexander Ragir in Rio de Janeiro at aragir@bloomberg.net
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