Brazil stocks drop on weak U.S. jobs, real firms

Fri Nov 6, 2009 2:48pm GMT
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SAO PAULO, Nov 6 (Reuters) - Brazil's stocks fell for the first time in four sessions on Friday as weaker-than-expected U.S. jobs data raised concern about a recovery in the world's largest economy and dampened appetite for riskier emerging market assets.

The benchmark Bovespa index .BVSP of the Sao Paulo stock exchange dropped 1.3 percent to 63,994.98, the first decline after climbing 5.3 percent over three straight days.

U.S. employers cut a deeper-than-expected 190,000 jobs in October, driving the unemployment rate to the highest since April 1983.

"The figures were really bad and dragged the market," said Luiz Roberto Monteiro, financial adviser at the Souza Barros brokerage.

Brazil's currency, the real (BRBY: Quote, Profile, Research), firmed 0.1 percent to 1.72 per dollar, after having gained 0.5 percent before the release of the U.S. data.

On the stock market, widely traded shares Vale and Petrobras led the market lower as prices of oil, copper and other commodities plunged on expectations a weak U.S. economy would pressure demand for metals and energy.

Mining giant Vale (VALE5.SA: Quote, Profile, Research) fell 1.6 percent to 41.22 reais, tracking a decline in copper prices in London and New York, while Petrobras (PETR4.SA: Quote, Profile, Research) lost 1 percent to 36.05 reais as crude oil plunged more than 2 percent in New York CLc1.

Shares of steelmaker Gerdau, banking giant Itau Unibanco and others that had rallied in recent days after positive third-quarter earnings also declined as investors took profits.

Gerdau (GGBR4.SA: Quote, Profile, Research) was down 2.75 percent to 27.28 reais, after jumping 6.7 percent over three days, while Itau Unibanco (ITUB4.SA: Quote, Profile, Research) declined 1.9 percent to 36 reais, reversing a three-day, 9.6 percent surge.  Continued...

 
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