LOS ANGELES (MarketWatch) — Brazilian stocks fell Monday, ending the market’s longest string of wins in eight months.
The Ibovespa (BR:BVSP), which swung between gains and losses, finished 0.5% lower at 61,805.98, under pressure from housing and most stocks in the steel group.
Home builder PDG Realty (US:PDGRY) led decliners as its shares fell 6.9%, and steel producer Usiminas (BR:USIM5) slumped 3.5%. Among market heavyweights, shares of iron-ore miner Vale (US:VALE) outpaced the steel group as they rose 0.9%.
State-run oil producer Petrobras (US:PBR) reversed course and finished down 0.2% as crude-oil futures turned lower. Oil futures fell following speculation the U.S. government will tap into the country’s emergency reserve of oil.
Crude for October delivery (US:CLV2) settled 2.4% lower at $96.62 a barrel.Brazilian stocks had gained roughly 10% over the past seven sessions in the run-up to and after the U.S. Federal Reserve last week announced its long-awaited plan to launch a third round of bond purchases aimed at helping the sluggish U.S. economy.
The Fed said it will purchase $40 billion of mortgage-backed securities every month until the labor market improves. It also said it will likely keep the federal funds rate near zero through at least the middle of 2015.
Meanwhile, Brazilian officials last week unveiled measures they expect to spur growth in Latin America’s largest economy.
The Rousseff administration expanded the number of industries that will be able to cut payroll taxes, and the central bank reduced reserve requirements for banks to encourage lending.
Economists and analysts polled by the Brazilian central bank continued to cut their 2012 growth estimates. A weekly survey released Monday left average growth expectations at 1.57%, down from 1.62% in the previous week.
On Monday, shares of online retailer B2W (BR:BTOW3) also lost grip of gains, ending down 1.2%. They logged their first decline in four sessions after a recent rally ushered in gains of 19%.
The surge in shares followed Brazilian news reports that Amazon Inc. (US:AMZN) may be in talks to buy B2W, noted UBS in a note to clients Monday.
UBS said it’s not the first time such news has been circulated. UBS did examine possible entry routes into Brazil by Amazon and said B2W is among likely takeover candidates.
“Brazil is too big to ignore,” wrote UBS analyst Gustavo Piras Oliveira, saying the country is poised to end this year with the fifth-largest online audience in the world, among other factors.
In Mexico City, stocks fell following last week’s rise of 1.6%. The IPC (MX:IPC) shed 0.3% at 40,589.90, with shares of banking firm Banorte (MX:GFNORTEO) off by 2.1% and wireless services heavyweight America Movil (US:AMX) down 1.2%.
Argentina’s Merval (AR:MERV) fell 2.5% to 2,479.24 with shares of steel company Siderar (AR:ERAR) losing 5.3%. Trading was closed in Chile for a holiday.
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Home builder PDG Realty (US:PDGRY) led decliners as its shares fell 6.9%, and steel producer Usiminas (BR:USIM5) slumped 3.5%. Among market heavyweights, shares of iron-ore miner Vale (US:VALE) outpaced the steel group as they rose 0.9%.
State-run oil producer Petrobras (US:PBR) reversed course and finished down 0.2% as crude-oil futures turned lower. Oil futures fell following speculation the U.S. government will tap into the country’s emergency reserve of oil.
Crude for October delivery (US:CLV2) settled 2.4% lower at $96.62 a barrel.Brazilian stocks had gained roughly 10% over the past seven sessions in the run-up to and after the U.S. Federal Reserve last week announced its long-awaited plan to launch a third round of bond purchases aimed at helping the sluggish U.S. economy.
The Fed said it will purchase $40 billion of mortgage-backed securities every month until the labor market improves. It also said it will likely keep the federal funds rate near zero through at least the middle of 2015.
Meanwhile, Brazilian officials last week unveiled measures they expect to spur growth in Latin America’s largest economy.
The Rousseff administration expanded the number of industries that will be able to cut payroll taxes, and the central bank reduced reserve requirements for banks to encourage lending.
Economists and analysts polled by the Brazilian central bank continued to cut their 2012 growth estimates. A weekly survey released Monday left average growth expectations at 1.57%, down from 1.62% in the previous week.
On Monday, shares of online retailer B2W (BR:BTOW3) also lost grip of gains, ending down 1.2%. They logged their first decline in four sessions after a recent rally ushered in gains of 19%.
The surge in shares followed Brazilian news reports that Amazon Inc. (US:AMZN) may be in talks to buy B2W, noted UBS in a note to clients Monday.
UBS said it’s not the first time such news has been circulated. UBS did examine possible entry routes into Brazil by Amazon and said B2W is among likely takeover candidates.
“Brazil is too big to ignore,” wrote UBS analyst Gustavo Piras Oliveira, saying the country is poised to end this year with the fifth-largest online audience in the world, among other factors.
In Mexico City, stocks fell following last week’s rise of 1.6%. The IPC (MX:IPC) shed 0.3% at 40,589.90, with shares of banking firm Banorte (MX:GFNORTEO) off by 2.1% and wireless services heavyweight America Movil (US:AMX) down 1.2%.
Argentina’s Merval (AR:MERV) fell 2.5% to 2,479.24 with shares of steel company Siderar (AR:ERAR) losing 5.3%. Trading was closed in Chile for a holiday.
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