May 18, 2022
Global stocks advance, erasing part of the week's losses;  Powell talks and more market topics today

Global stocks advance, erasing part of the week’s losses; Powell talks and more market topics today

New York futures and European bourses are higher, while Asian stocks closed in positive territory early Friday (13), as global markets look to reclaim some of their gains after a very volatile week, as investors assess inflation and interest rate expectations.

US Federal Reserve Chairman Jerome Powell said on Thursday that controlling inflation will not be easy and warned that he could not promise a soft landing for the economy. This Friday, Minneapolis Fed President Neil Kashkari and Cleveland Fed President Loretta Mester attend events that investors should watch closely.

Global markets fell last Thursday as investors worried about slowing growth, higher interest rates and US inflation data for April, sparking fears that the path of a strongly higher interest rate may be ahead.

Investors are also watching the geopolitical consequences of the war in Ukraine. Russia on Thursday threatened to retaliate against Finland after Finnish leaders said the northern European country should apply for Join NATO “without delay”.

European leaders face a race to secure alternative gas suppliers after Moscow announced sanctions on European subsidiaries of the state-owned Gazprom it majority-owned. The move came after Ukraine’s state-owned network operator suspended Russian flows to Europe through a major entry point.

On the economic data front, Friday features an import price reading for April and an early look at consumer confidence in May. In addition, speeches by Federal Reserve leaders, today with Neil Kashkari (12:00), on energy prices and inflation, and Loretta Meester (1:00 hours), which frightened markets a day by not ruling out “forever” 75 basis points interest.

Here, the week ends with the release of results from Cemig (CMIG4), Cosan (CSAN3), M Dias Branco (MDIA3) and Raízen (RAIZ4). On Friday morning, Ser (SEER3)’s balance sheet was released, while the night before Americanas (AMER3), B3 (B3SA3), Cogna (COGN3), Yduqs (YDUQS3), among others released their numbers.

Check out more highlights:

1. Global Scholarships

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US futures indices erase part of the losses in recent days and run higher on Friday (13), as investors assess the prospects for inflation and the monetary tightening cycle.

Yesterday’s session was very volatile on Wall Street, according to Investors Meditation signals at Inflation has reached its peak With fears that this might happen staying elevated longer than expected, Leading to a sharper monetary tightening than before US Central Bank.

The three major US stock indices were volatile Thursday, and the S&P 500 came within close range of confirming its entry into the market. at low after From the standard he has reached On the third of January.

Watch the performance of futures markets:

  • Dow Jones Futures (USA), +0.73%
  • S&P 500 futures contract (US), +1.02%
  • Nasdaq Futures (US), +1.61%

Asia

Asian markets closed higher after a lively week as investors focused on inflation and the global economic outlook.

Concerns about rising prices and the economic outlook have weighed on global investor sentiment in recent days, with riskier assets such as technology stocks and cryptocurrencies taking a hit.

Already in this session, markets are mainly encouraged after the Beijing authorities ruled out a city lockdown, while Shanghai plans to reach an end to the transmission of the virus in the community in the next few weeks of May.

  • Shanghai SE (China) + 0.96%
  • Nikkei (Japan), +2.64%
  • Hang Seng Index (Hong Kong), +2.68%
  • Kospi (South Korea) + 2.12%

Europe

European markets are rising in line with the bullish movement in Wall Street futures as they look to reclaim some of their gains after a week of declines.

On the radar of indicators, industrial production in the eurozone fell 1.8% in March compared to February, according to seasonally adjusted data published by the European Union’s official statistics agency, Eurostat. The result was less than the expectations of analysts consulted by the Wall Street Journal, who had expected a 1% drop in production.

In an annual comparison, industrial production by the mass fell 0.8% in March. In this case, market expectations were for a 0.6% drop. Eurostat also revised industrial production figures for February to a monthly gain of 0.5% and an annual increase of 1.7%.

  • FTSE 100 (UK), +1.36%
  • Dax (Germany), +11%
  • CAC 40 (France), +1.43%
  • FTSE MIB (Italy), +1.07%

goods

Crude oil rose on Friday but headed for its first weekly loss in three weeks as inflation concerns and China’s Covid-19 lockdown offset concerns about dwindling fuel supplies from Russia.

  • West Texas Intermediate crude, +0.58%, at $106.75 a barrel
  • Brent crude rose 0.78 percent to $ 108.29 a barrel
  • Iron ore traded on the Dalian Stock Exchange rose 0.98% to 823.00 yuan, equivalent to 121.27 US dollars.

Bitcoin

  • Bitcoin, +9.34% to $3,403.07 (from 24 hours ago)

2. Schedule

The week ends with industrial production data in the Eurozone released in the morning with PNAD Continuous in Brazil quarterly (9 AM). In the US, it has consumer confidence data (11 hours).

Brazil

9:00 a.m.: PNAD Quarterly Ongoing Survey

United States of America

9:30 am: Change in prices of imported and exported goods

11 a.m.: Consumer Confidence

12:00: Neil Kashkari, Chairman of the Federal Reserve Board of Minneapolis, attended an event on energy prices and their impact on inflation

1 p.m.: Loretta Mester, Chair of the Federal Reserve Board of Cleveland, participates in a panel discussion at the International Monetary Policy Research Forum

3 p.m.: Baker Hughes rig count

covid in brazil

And last Thursday (12) Brazil recorded 136 deaths and 22,107 cases of coronavirus infection within 24 hours, according to information from the Media Union, at 8 pm.

The 7-day moving average for Covid deaths in Brazil is 105, down 15% compared to the 14-day level before that.

The seven-day moving average of new cases was 16,555, which is a 22% increase over the level 14 days ago.

The number of people fully vaccinated against Covid in Brazil has reached 165,033,881, equivalent to 76.82% of the population.

The number of people who received at least the first dose of vaccines was 177,660,961, representing 82.7% of the population.

The booster dose was given to 89,136,404 people or 41.49% of the population.

3. Petrobras in focus

The new Minister of Mines and Energy, Adolfo Sachida, on Thursday (12) formally asked the Minister of Economy, Paolo Guedes, to conduct studies so that Petrobras (PETR3;PETR4) and PPSA.

Last Wednesday (11), Sachsida boosted its interest in the privatization of Petrobras and PPSA.

Do not enter into Petrobras

President Jair Bolsonaro said last Thursday Considering legal action against Petrobras due to high fuel prices. In a Facebook Live, he said he was “looking for legal ways to get Petrobras to perform its social role defined by the constitution.” He stated that “there will be no interference in Petrobras except through legal channels.”

4. Political Radar

As Bolsonaro said during his live broadcast on social media, the armed forces will not interfere in the elections. The statement came in response to the president of the Supreme Electoral Tribunal, Edson Fachin, who earlier criticized attempts to discredit the Brazilian electoral system.

The chief electoral officer of the Supreme Electoral Tribunal, Minister Edson Fachin, said the day before that those handling elections in the country were “unarmed forces” and that electoral justice would not be subject to “anyone”.

5. Corporate radar

The week ends with Reveal the results By Auren (AURE3), Biomm (BIOM3), Celesc (CLSC4), Cemig (CMIG4), Cosan (CSAN3), Cyrela (CYRE3), Eucatex (EUCA3), Fertilizantes Heringer (FHER3), Kora (KRSA3) and Lupatech (LUPA3 ))), M Dias Branco (MDIA3), Raízen (RAIZ4), Renova (RNEW3), Saraiva (SLED3), SER Educacional (SEER3) and Wilson Sons (PORT3).

American (Amer 3)

The Americans (AMER3) It suffered a loss of R$137 million in the first quarter, a decrease of 38%.

Adjusted earnings before interest, tax, depreciation and amortization (Ebitda) increased 57.9% to R$660 million. Ebitda’s adjusted margin rose 1.9 percentage points to 9.8%.

B3 (B3SA3)

B3 Net Income (B3SA3) Decreased to R$1.1 billion in the first quarter of 22. A year ago, B3 had made R$1.25 billion in profits.

In turn, Ebitda from B3 fell 11.5% to R$1.7 billion, with the margin dropping from 83.1% to 75.4%.

MRV (MRVE3)

MRV (MRVE3) Recorded net income attributable to observers of R$71 million in the first quarter of 2022 (Q1 22), which is 47.8% less than the amount recorded in the same quarter of 2021.

Earnings before interest, tax, depreciation and amortization (Ebitda) decreased 5.8% in the first quarter of 22 to total R$199 million.

Inter (BIDI4; BIDI11)

Banco Inter shareholders (BIDI4; BIDI11) approved this Thursday (12) Proposed company reorganization The company’s shares are transferred to the NASDAQ Stock Exchange.

(with Estadão, Reuters and Agência Brasil)

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