June 28, 2022
Ibovespa speeds up and drops by more than 2% after the Fomc minutes come on a stronger tone;  The dollar goes to 5.70 Brazilian real

European stocks and US futures fall, Guedes and Campos Neto at IMF meeting and today’s market highlights

U.S. futures indices were slightly lower, while Asian stocks closed mixed on Tuesday (19), announcing the central bank’s funding of China to sectors affected by the Govt. The announcement came after China released mixed economic data, saying retail sales in March were lower than expected, while GDP growth in the first quarter was higher than expected.

The radar also has the potential to tighten the central bank’s monetary policy more aggressively to combat inflation.

Focusing on the next steps of inflation and the Federal Reserve, investors are looking for information on how supply chains and consumer demand for large companies are functioning. Although the central bank has said it will rely on data to determine how it raises rates throughout the year, expectations for a central bank hike have risen sharply in recent months.

Markets echoed James Bullard’s speech yesterday afternoon, in which Fomc could not rule out a 0.75 percentage point increase at the next meeting, although this was not the most likely scenario. According to him, with a 0.5 point increase in May, the central bank should move the interest rate to 3.5% by the end of the year. In addition, he reiterated that economic activity should be better by 2022, that unemployment could be as low as 3% and that inflation could be controlled without creating a recession in the country.

Before the market starts, Johnson & Johnson and insurance company Travelers will release their latest results. The focus will be on Netflix’s results, which will be released after the market closes.

The long-awaited offensive in Ukraine’s eastern Donbass region began on Monday, with global investors watching Ukraine closely after the country’s military said on Monday that attacks had intensified in the Slopozhansky operating districts and in Donetsk in the north and east of the country.

In Brazil, quarterly production data for Vale, GPA, Assaí and Carrefour were released after the markets closed.

In addition, Minister Paulo Guedes and BC President Roberto Campos Neto are attending the IMF’s spring meeting in Washington.

See also highlights:

1. Global Scholarship

To us

The U.S. first-quarter earnings season warmed up this morning. Before opening, Johnson & Johnson & Travelers will release their latest results. The results of several medium-sized banks, such as Hasbro, Lockheed Martin and Citizens Financial Report, were released today.

Concerns about the central bank’s next steps have also caused more volatility in the bond market, which seems to have weighed on stocks in recent weeks.

See the performance of futures markets:

  • Dow Jones Future (USA), -0.02%
  • S&P 500 Futures (US), -0.11%
  • Nasdaq Futures (US), -0.29%

Asia

Asian markets have not closed in a clear direction as investors have not digested China’s People’s Bank announcement that it will increase financial assistance to businesses, companies and people affected by Govt-19.

Hong Kong’s Hong Kong index led to losses in the region’s major markets, down about 2.4%.

Shares of Chinese technology in the city plummeted after Chinese officials announced Friday that they would ban live streaming of unauthorized video games.

  • Shanghai SE (China), -0.05%
  • Nikkei (Japan), + 0.69%
  • Hong Cheng Index (Hong Kong), -2.28%
  • Cosby (South Korea), + 0.95%

Europe

European markets are less active during the holiday season, while investors’ attention is focused on the latest developments in the war between Russia and Ukraine.

The World Bank has lowered its global growth forecast for 2022 from almost 4.1% to 3.2%, citing pressure from Russia’s invasion of Ukraine, as the conflict shows no signs of ending at any time. .

  • FTSE 100 (UK), -0.16%
  • DAX (Germany), -0.53%
  • CAC 40 (France), -0.91%
  • FTSE MIB (Italy), -1.20%

Ingredients

Oil prices eased during the session as Libya was forced to suspend some exports and factories in Shanghai after the Kovit-19 strike, easing some concerns about the crisis and preparing for a reopening, as markets worried about tight global supplies.

  • WTI oil, -1.28% $ 106.82 a barrel
  • Brent crude oil, -0.93% a barrel $ 112.11
  • Iron ore traded down 3.27% at 887.00 yuan, equivalent to US $ 139.10 on the Dalian Exchange.

Bitcoin

  • Bitcoin, + 4.74% to $ 40,740.06 (up from 24 hours ago)

2. Table

Tuesday began with data on industrial production in Japan (1: 30h), with the exception of the IPC Fipe (5: 00h) in Brazil. Valley (VALE3) Reveals its quarterly production, as well as Assaí (ASAI3) And Sugarlof Mountain (PCAR3) After the markets are closed. In the United States there is still a variation of AEI oil stocks (17: 30h). At night, Japan has a trading balance (20: 50h) and the People’s Bank of China’s preferred lending ratio (22: 15h).

United States

9:30 am: Monthly new house construction, with 1.7 million Refinitiv consensus

17:30: Change in API oil stocks

Brazil

6 p.m .: Roberto Campos Neto and Paulo Goodes attend International Monetary Fund (IMF) meetings in Washington DC, USA.

Japan

20:50: Monthly trading balance

3. The world economy should grow less by 2022

The World Bank has lowered its 2022 global economic growth forecast from 4.1% to 3.2%. Commenting on this during a spring meeting with the International Monetary Fund (IMF), the company’s chairman David Malpas provided the information, highlighting that inflation and debt in countries are “two major problems facing GDP”. (GDP) world.

With Kovit-19, high inflation and the Russian invasion of Ukraine, Malpas called the crisis a “one-on-one” and the plan was cut.

Brazil has called for WTO intervention in the wake of the war

President Jair Bolsanaro has called on WTO Director-General Enkoshi Okonzo-Ivela to help protect the economic sanctions and logistics restrictions imposed in Ukraine during the war. The aim is to ensure the free flow of raw materials for agriculture, to prevent shortages of goods in the global market, and to ease restrictions on Russia and Belarus.

P.C. said the angry crowd would not be affected by the strike

The central bank recently said it would not be affected by the strike by agency staff for the next COPOM meeting on May 3 and 4. The data of the Focus Bulletin will continue to be accessed and used by team members on a random basis. “Preparing conjugal presentations for Cobomu is an essential process and will therefore be carried out during the shutdown,” the broadcaster was told by BC in response to questions. The BC report contradicts a previous report by the National Association of Central Bank Analysts (ANBCB). According to the company, “data blackout”, without revealing many bulletins and statistics by BC, already affects the readiness of Cobomin.

4. The government evaluates benefits for civil servants after dissatisfaction with the restructuring

Folha, who faced dissatisfaction with the 5% linear adjustment of different sections of the Federal Civil Service, said members of the administration are considering increasing salaries and food stamps and value. Daily allowances for travel.

The MPF is asking WhatsApp to postpone the release of the Communities feature

The Federal Ministry of Public Works (MPF) in Sao Paulo has questioned the possibility of postponing the WhatsApp processor until 2023, which will enable the release of a feature called “Communities”, which will enable groups of thousands of members to assemble now. About 200 people.

Covid data in Brazil

Last Monday (18), 65 deaths and 10,393 Covid-19 cases were reported in 24 hours in Brazil, according to the Federation of Press Vehicles at 8pm.

In Brazil, the moving average of coveted deaths in 7 days is 98, down 47% from the previous 14 days.

The moving average of new cases in seven days was 14,253, which is 36% less than the 14-day previous level.

This means that 162,950,559 people in Brazil are fully immunized against goiter, which equates to 75.85% of the population.

The number of people who received the minimum first-dose vaccine reached 176,798,994, or 82.3% of the population.

The booster dose was given to 83,784,343 people or 39% of the population.

5. Corporate Radar

Itau (ITUB4)

Itaú Unibanco celebrated, Through its subsidiaries, Agreement to acquire 12.82% of Arbia’s share capital through a financial contribution.

Orbia is a platform that offers rural producers a complete journey into the digital universe, facilitating operations ranging from planting to commercialization of products in the field.

Alliance Sone (ALSO3) And brMalls (BRML3)

Alliance Sone (ALSO3) Presented to brMalls Board of Directors (BRML3) The new business merger proposal has a very favorable exchange rate for brMalls shareholders.

During this time, Alliance Sone paid R $ 1.25 billion to brMalls and a 1-share exchange rate issued by brMalls to 0.3940 shares issued by the company.

The previous proposal forecast cash payments of R $ 1.850 billion and an exchange rate of 1 share offered by brMalls to 0.33414420 shares issued by Alliance Sone.

Aaron (AURE3)

Aaron’s board of directors approved the distribution of dividends of R $ 100 million, equivalent to R $ 0.10 per share.

MRV (MRVE3)

MRV & Co (MRVE3) Reported net sales Total R $ 1.743 billion for the quarter, up 7.6% compared to 1Q21 and 4.2% compared to 1Q20.

Tent (TEND3)

Tenta introduced 7 projects in 1Q22, with a total sales value (PSV) of R $ 467.2 million, 23.5% lower than 1Q21 and 44% lower than 4Q21.

Net sales between January and March this year were BRL 578.6 million, down 17.8% year-on-year and 25.9% compared to the previous quarter, while the pace of net distribution (VSO) was 26, 1%.

(With Estado, Reuters and Agncia Brasil)

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