SAO PAULO – After the most difficult time of the month, investors will have a few days to rest, which does not mean that the business environment will be calm.
The first holiday in the United States in the next few days, Labor Day will be celebrated this Monday (6), which will close Wall Street, which will significantly reduce the cash flow of business in Brazil.
Since the second Tuesday (7) is the country’s Independence Holiday, B3 will not be performing any activities. On the other hand, it is always important for investors to focus on the ADRs of Brazilian companies trading in New York, which could signal a reopening of the stock market on Wednesday.
However, this time another factor could turn the market into a more “unpredictable” movement: demonstrations are scheduled for September 7.
The events are drawing attention amid a climate of institutional tension that has escalated in recent weeks due to clashes between President Jair Bolsanaro and the Supreme Court (SDF). On Friday, Bolzano said September 7 would be a final warning to the people of the two Supreme Courts without mentioning names.
“If anyone wants to play outside the four lines of the constitution, we will show that we can play too,” he said. There is also tension about possible meetings between pro-government groups and the government, which could lead to confusion.
In the political arena, the bill to change the income tax rules in the coming days should be sent to the Senate after being approved by the House last Thursday. According to several newspapers, Senate President Rodrigo Pacheco opposes the bill, which has been criticized by states for fear of losing revenue.
On the indicators side, the week will be quiet, mainly due to the holidays. In Brazil, the Broad Consumer Price Index (IPCA) released by the Geographical and Statistical Institute of Brazil (IBGE) on Thursday (9) is the highlight.
According to Prodesco’s analysis, inflation is expected to rise to 0.69% in August. “We believe that this metric in August and September should represent the peak of inflation.
This week will feature the General Price Index-Internal Availability (IGP-DI), Wednesday (8), with retail data, Friday (10).
Abroad, the focus will be on the eurozone, considering the weak agenda. The final reading of the gross domestic product (GDP) for the second quarter will be known on Tuesday, and the European Central Bank (ECB) monetary policy meeting will be held on Thursday.
Finally, there is the release of the book Beige in the United States on Wednesday, which will help measure the temperature of the largest economy and its recovery pace.
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