--Brazil shares tumble as U.S. lawmakers haggle over budget deal

--Investors wary ahead of economic data releases, Brazil Central Bank meeting

--Brazil's benchmark Ibovespa stocks index opens 0.2% lower at 56,128 points

 
   By Jeff Fick

RIO DE JANEIRO--Brazilian stocks opened lower Wednesday amid growing concerns that U.S. lawmakers are making little progress toward reaching a deal to avert automatic spending cuts and tax increases early next year.

The Ibovespa stocks index opened 0.2% lower at 56,128 points, down from Tuesday's close at 56,248 points.

Local blue-chip shares tracked declines abroad after U.S. Senate majority leader Harry Reid (D., Nev.) said late Tuesday there was little progress in talks aimed to avoid the so-called fiscal cliff. U.S. lawmakers need to reach a budget deal before the end of the year, when budget cuts and tax increases are otherwise slated to automatically go into effect. Economists have warned that the measures could tip the U.S. into recession.

Investors were also wary ahead of the release of key economic data, including new U.S. home sales for October and the Federal Reserve's beige book, a snapshot of the world's largest economy known by the color of its cover.

In Brazil, the focus is on local interest rates ahead of Wednesday's meeting of the Brazilian Central Bank. The central bank, which signaled that its recent rate-cutting cycle was at an end in October, is expected to hold the benchmark Selic base interest rate steady at a record-low 7.25%.

The central bank is expected to embark on a long period of stable monetary policy, leading to more orderly financial markets, analysts said. Over the last two years, the Selic rate has been as high as 12.5% and as low as the current 7.25%.

Internet retailer B2W (BCGVY, BTOW3.BR) led gainers for a second-consecutive day after analysts said the company was poised for another round of rapid growth. Brazilian retailers are expected to benefit from increased activity in Latin America's largest economy, with growth advancing from an expected 1.5% this year to a hoped-for expansion of about 4.0% in 2013.

B2W shares advanced 10.9% to BRL15.52. Controlling shareholder Lojas Americanas (LAME4.BR) was down 0.1% to BRL19.21.

Electric utility stocks also climbed amid news that the government may have miscalculated some payments for unamortized investments as part of concession renewals, leading to increased payments for some companies. Minas Gerais-state controlled utility Cemig (CMIG4.BR) climbed 3.5% to BRL25.00, while Companhia Energetica de Sao Paulo (CESDY, CESP5.BR), or CESP, added 5.7% to BRL17.97. Eletrobras (ELET6.BR) rose 2.2% to BRL8.47.

Shares of state-run energy giant Petroleo Brasileiro (PBR, PETR4.BR), or Petrobras, gained 0.1% to BRL18.53. Independent driller OGX Petroleo e Participacoes (OGXP3.BR, OGXPY) sank 0.2% to BRL4.43, while start-up HRT Participacoes em Petroleo SA (HRTPY, HRTP3.BR) added 0.9% to BRL5.38. Natural gas producer QGEP Participacoes (QGEP3.BR) lost 0.2% to BRL13.35.

Mining company Vale SA (VALE, VALE5.BR), the world's largest iron ore producer and second-largest nickel producer, fell 0.7% to BRL35.48.

Write to Jeff Fick at Jeff.Fick@dowjones.com