Economics
Emerging Stocks Drop as Brazil Decline Outweighs Commodity Gains
- Consumer companies lead Ibovespa drop on interest rate outlook
- Raw-material shares advance to highest level in two months
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Most emerging-market stocks retreated as Brazilian consumer companies slumped on prospects for a slower-than-expected reduction in borrowing costs, outweighing gains in commodity producers from South Africa to China.
More than 470 stocks on the MSCI Emerging Markets Index fell while about 300 advanced. The benchmark gauge fell less than 0.1 percent to 918.25. The Ibovespa retreated 0.3 percent in Sao Paulo after the central bank signaled moderate interest-rate cuts in coming months that surprised many economists who had expected a faster reduction. A gauge of developing-nation raw-material stocks jumped to the highest level since August as growing signs of resilience in the global economy boosted the outlook for commodity producers.