Brazil’s real joined gains in emerging markets on Monday as commodities advanced, boosting the outlook for the country’s raw-materials exports. The Ibovespa fluctuated.
The currency strengthened 1 percent to 3.4994 per dollar at 4:18 p.m. in Sao Paulo as metals and crude rallied. The Bloomberg Commodity Index added 0.8 percent, improving inflows prospects for a country where half of exports are of raw materials. The Ibovespa gained 0.2 percent to 51,909.84 after earlier falling as much as 0.4 percent. Producers account for 22 percent of the index’s weighting.
Seven of the 10 best performers on the equity gauge Monday were related to the raw-material industry, with oil giant Petroleo Brasileiro SA and miner Vale SA among the best performers. The rally outweighed a central bank survey showing analysts predict further contraction for Latin America’s largest economy, with consumer stocks including retailer Cia. Brasileira de Distribuicao SA slumping.
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