Tuesday 30 June 2009

Brazil Stocks Erase Gains, Sink 1.7% On US Economic Data

Brazil Stocks Erase Gains, Sink 1.7% On US Economic Data

RIO DE JANEIRO (Dow Jones)--Brazil's benchmark Ibovespa stocks index erased early session gains Tuesday as U.S. data continued to show the economic troubles were far from over.

The Ibovespa was down 1.7% at 51,221 as of 1447 GMT (10:47 a.m. ET) after peaking shortly after the open at a session high of 52,435 points, up 0.6%.

The real currency also weakened from a strong start, trading at BRL1.951 per dollar after opening at BRL1.9425.

Consumer confidence and a continued decline in U.S. home prices undercut investors' appetite for equities, analysts said.

The Conference Board's consumer confidence index fell to 49.3 from a revised 54.8 in May. Economists expected a reading of 56.0. The S&P Case-Shiller home-price indexes also showed U.S. home prices continued their multiyear tumble in April.

Key commodity shares were leading the index lower. State-run energy giant Petroleo Brasileiro (PBR) was off 1.2% at BRL32.64. Bellwether miner Vale SA (VALE) tumbled 1.1% to BRL29.98.

Electronic payments company Visanet (VNET3.BR) also retreated after its stellar debut Monday, slipping 0.1% to BRL16.76. Visanet raised BRL8.4 billion in the world's largest initial public offering so far in 2009.

-By Jeff Fick, Dow Jones Newswires; 55-21-2586-6085; Jeff.Fick@dowjones.com

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(END) Dow Jones Newswires

June 30, 2009 10:56 ET (14:56 GMT)

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