Brazilian shares, real tumble on global gloom
BRASILIA, Dec 1 (Reuters) - Brazilian shares followed global stocks downward on Monday, as disappointing manufacturing data from major economies prompted investors to take profits from last week's gains, while the local currency also eased.
Sao Paulo's main stock index, the Bovespa .BVSP lost 5.23 percent to 34,683.51 points, with the decline led by heavyweights Vale and Petrobras as commodity prices eased.
The Bovespa rose more than 17 percent last week, closing in positive territory in four of the week's five sessions.
But on Monday, world stocks ended six consecutive days of gains as data showing slumping manufacturing activity in China and Europe provided more insight into the extent of the global economic slowdown.
"The data broke with last week's optimism," said a trader in Sao Paulo.
Brazil's real (BRBY) shed about 1.2 percent to 2.348 per dollar as fears over the world economy increased risk aversion and pushed investors away from riskier emerging market assets.
State-run Petrobras (PETR4.SA) and mining giant Vale (VALE5.SA) were the main drag on the market.
Oil giant Petrobras fell nearly 6 percent to 18.88 reais as oil prices eased more than $3 to below $52 a barrel.
Vale also shed more than 6 percent to 23 reais on easier copper prices.
Bank shares, which had gained recently, also eased after speculation of further consolidation in the sector after Itau agreed to buy Unibanco and Banco do Brasil announced it would take over Nossa Caixa (BNCA3.SA).
Itau (ITAU4.SA), Brazil's second-largest private sector bank, shed 4.96 percent to 25.30 reais, Unibanco UBBR11.SA fell 5.3 percent to 13.95 reais and Banco do Brasil (BBAS3.SA) was down 3.78 percent at 13.76 reais.
Among telecoms, Oi Participacoes (TNLP4.SA) shed 4.6 percent to 31.96 reais after rallying last week when it said it would raise enough cash for its purchase of Brasil Telecom by issuing of promissory notes.
Elsewhere in the sector, Brasil TIM Participacoes (TCSL4.SA) tumbled 6.77 percent to 3.57 reais.
Adding to the gloom, the latest weekly central bank survey showed market analysts revised down their forecast for 2009 economic growth. They expect Brazil's economy to grow 2.8 percent next year from a previous projection of 3 percent.
Interest rate futures <0#DIJ:> on the BM&F commodities and futures exchange were mixed. (Reporting by Aluisio Alves and Ana Nicolaci da Costa; Editing by Theodore d'Afflisio)
