Most Brazilian stocks dropped as an industry report showing U.S. employers added more workers than forecast rekindled speculation that the Federal Reserve may soon reduce stimulus that has boosted emerging-market assets.
Anhanguera Educacional Participacoes SA (AEDU3) tumbled after Brazil's antitrust regulator signaled it may limit the education company's merger with competitor Kroton Educacional SA. (KROT3) Lojas Renner SA (LREN3) led retailers higher after a report showed Brazil's industrial production expanded faster than expected in October, easing concern that growth is faltering.
The Ibovespa was little changed at 50,351.26 at 11:31 a.m. in Sao Paulo, with 45 stocks lower and 25 higher. The real depreciated 0.3 percent to 2.3746 per U.S. dollar. Companies in the U.S. increased payrolls by 215,000 in November, according to the ADP Research Institute in Roseland, New Jersey. The median forecast of economists surveyed by Bloomberg called for a 170,000 advance.
"What will happen with the stimulus program in the U.S. is still the main issue for global markets at the moment," Alvaro Bandeira, a partner at Orama Asset Management, said by phone from Rio de Janeiro. "Brazilian equities are following the trend set by the news abroad. We're in that situation when good numbers have a negative impact on the market because they support the case for less stimulus."
The Ibovespa earlier rose as much as 0.8 percent after the national statistics agency said Brazil's industrial production expanded 0.9 percent in October from a year earlier. Economists surveyed by Bloomberg had forecast growth of 0.4 percent.
Anhanguera fell 3.6 percent to 14.50 reais. Renner added 2.9 percent to 61.23 reais.
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