Brazil stocks, real fall on global recovery concerns

SAO PAULO, March 4 (Reuters) - Brazilian stocks fell on Thursday for a second straight session, giving up early gains after weak U.S. home sales data pushed down oil futures and helped lift the dollar.

U.S. pending home sales unexpectedly dropped 7.6 percent, surprising markets which had expected a 1 percent increase, and wiping out confidence that followed some positive readings in retail sales and jobless claims data.

Investors in Brazil have become more U.S. data-dependent, as developments in equity markets there are seen as a gauge of risk-taking and global confidence.

"The response from the Brazilian market was quick because the Bovespa had risen more than foreign markets," said Bernardo Rodarte of Sita Corretora. "When they saw the negative number, foreign investors took advantage of the moment to pocket recent gains."

The benchmark Bovespa index .BVSP fell 0.6 percent to 67,238 points in early afternoon trading following profit-taking in the previous session. The country's currency, the real BRBY, edged down 0.1 percent to 1.792 per dollar.

The dollar strengthened against the euro and a basket of major currencies, pushing commodities prices lower. The benchmark Reuters-Jefferies index .CRB slumped 1.11 percent.

The weak U.S. home sales numbers also weighed on optimism over a resolution to a growing debt problems brewing in the euro zone.

Debt-burdened Greece drew strong demand for a crucial bond issue on Thursday but paid a steep risk premium. The problems in Greece have exposed strains within the euro zone and roiled markets in recent weeks, particularly hitting riskier assets.

State-controlled energy giant Petrobras (PETR4.SA), the most heavily-weighted stock in the index, was off 0.48 percent to 34.98 reais.

Mining company Vale (VALE5.SA) (VALE.N), the world's largest iron ore trader, slipped 0.07 percent to 45.31 reais.

Grupo Pao de Acucar PCAR5.SA, Brazil's largest diversified retail group, said same-store sales should rise close to 15 percent this year, the company's CEO said on a conference call with analysts.

Brazil's automobile output jumped 23.9 percent in February from a year earlier while January industrial production increased at its fastest year-on-year pace in 15 years, underscoring expectations of a strong rebound in Latin America's largest economy.

Steelmakers also fell. Gerdau (GGBR4.SA) shed 0.22 percent to 26.66 reais, Usiminas (USIM5.SA) moved down 0.54 percent to 51.11 reais and CSN (CSNA3.SA) slipped 1.26 percent to 59.79 reais.

Yields on Brazilian interest rate futures contracts <0#DIJ:> ticked slightly lower.

The yield on the contract due January 2011 DIJF1 edged down to 10.45 percent. The yield on the contract due January 2012 DIJF2 fell to 11.61 percent from 11.63 percent.

Investors use the contracts to bet on trends in the country's benchmark interest rate, the Selic, currently at a record-low 8.75 percent.