Brazil Stocks Fall on Growth Concern: World's Biggest Mover

Brazil's main stock index fell the most in almost nine months, led by oil company Petroleo Brasileiro SA, on concern slowing global growth will crimp demand for raw materials.

The Bovespa Index of the most-traded stocks on the Sao Paulo exchange fell 2,793.69, or 4.3 percent, to 61,526.87. The drop was the biggest move among global stock benchmarks and Brazil's worst tumble since Feb. 27. The Morgan Stanley Capital International index of Latin American shares fell 5.3 percent, the most since Aug. 16, while in Mexico the Bolsa fell 3.3 percent.

``We're seeing a delicate and painful process of adjustment in the size of the global economy,'' said Andre Caminada, who helps manage the equivalent of about $225 million at Victoire Finance Capital in Sao Paulo. ``Any index that has a big proportion of commodities is going to be incredibly sensitive to that.''

Brazilian stocks, which rose to a record Oct. 31, have little room for further gains, as a rally commodities and the currency that drove stocks higher is likely to slow, analysts including Damian Fraser at UBS said, as they downgraded Brazil from a ``top regional pick.'' Oil today fell 1.8 percent in New York. In London, copper fell along with other metals, hitting the lowest price in seven months as rising inventories signaled slumping demand.

Rising fuel costs may have slowed retail spending growth in the U.S., the world's largest oil user, to a four-month low in October, according to a Bloomberg survey.
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