July 1, 2022
US futures drop after yesterday's jump with Powell;  Feedback on Copom and more highlights in the market today

US futures drop after yesterday’s jump with Powell; Feedback on Copom and more highlights in the market today

New York index futures are falling, while European shares are rising Thursday morning (5), after the Federal Reserve raised interest rates by half a point; However, Jerome Powell, Chairman of the Federal Reserve, dismissed speculation about a more aggressive monetary tightening, What excited the markets? eve.

Shares rose for a third day in a row earlier in the month after the Federal Reserve raised its benchmark rate by 50 basis points, as expected, and said it would start cutting its balance sheet in June. Investor sentiment, which has been mired since the beginning of the year, changed during Powell’s press conference when he made it clear that the Fed was “not actively considering” a larger 75 basis point increase.

After Powell’s comments, investors showed more confidence in the central bank’s ability to slow inflation without causing a recession.

The war in Ukraine is still on the radar of investors. Russian forces reportedly renewed their offensive on the Azovstal steel plant complex, the last stronghold of Ukrainian fighters in the southern port city of Mariupol.

Meanwhile, the European Union has proposed a phased embargo on Russian oil in its sixth round of sanctions against Moscow since the unprovoked invasion of Ukraine.

In economic data, investors will be watching the US jobless claims data at 9:30 am.

After Cobom’s decision to raise the interest rate by 1 percentage point, the domestic indicators’ calendar is empty. Investors should echo that BC failed to implement its flight plan and indicated extending the cycle of base rate increases until June, Employing a new ‘lower volume’ mod.

In the corporate sphere, the most important thing is to reveal Petrobras’ results after the market closes.

Check out more highlights:

1. Global Scholarships

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US index futures run lower after the Federal Reserve raised interest rates by half a point and the major indexes rose in the previous session.

US balance sheet season continues this Thursday, with Shell, Shopify and ConocoPhillips ahead of opening. Block, DoorDash, Shake Shack, Zillow and other big names will be announced after the market closes.

Watch the performance of futures markets:

  • Dow Jones Future (USA), -0.49%
  • S&P 500 futures contract (US), -0.74%
  • Nasdaq Future (USA), -1.03%

Asia

Asian markets closed with gains and losses after the Federal Reserve trimmed its bets on further monetary tightening and the return of business in China after the holidays.

A private sector survey on Thursday showed that activity in China’s service sector contracted further in April. The Caixin Services Purchasing Managers’ Index (PMI) fell to 36.2 in April, down from March’s reading of 42.

  • Shanghai SE (China) + 0.68%
  • Nikkei (Japan), closed on public holidays
  • Hang Seng Index (Hong Kong), -0.36%
  • Kospi (South Korea), closed on public holidays

Europe

European markets are running higher on global sentiment after the Federal Reserve shrugged off speculation of more aggressive monetary tightening.

The focus will turn on Europe on Thursday to the Bank of England, which is expected to announce a fourth consecutive rate hike to combat price hikes.

  • FTSE 100 (UK), +1.04%
  • Dax (Germany), +1.40%
  • CAC 40 (France) + 1.48%
  • FTSE MIB (Italy), +1.04%

goods

Oil prices were mixed on Thursday after a sharp rise the previous day amid the European Union’s proposal to impose new sanctions on Russia, including a six-month oil embargo, offsetting concerns about Chinese demand.

  • West Texas Intermediate crude, down -0.12% to $107.68 a barrel
  • Brent oil rose 0.14 percent to $110.29 a barrel
  • Iron ore traded on the Dalian Stock Exchange rose 1.87% to 871.50 yuan, equivalent to 131.76 US dollars.

Bitcoin

  • Bitcoin, +1.48% to $39,515.92 (from 24 hours ago)

2. Schedule

The day begins with the Bank of England’s interest rate decision (8:00 AM) and US jobless claims (9:30 AM). OPEC+ meets in the middle of the afternoon (2:50 pm).

Investors also resonate Coboom’s monetary policy decision. The central bank raised the interest rate by 1.0 percentage point this Wednesday, at 12.75% annually, In line with market expectationsAnd he said that an extension of the interest rate hike cycle is possible with a slight modification at the next meetingin June, without specifying whether this will be the latest price increase.

The statement bolsters our expectations for an additional 50 basis points increase in June, taking Selic to 13.25% at the end of the rally. Given that risk continues to weigh on the upside, we maintain a bullish bias on this expectation,” notes Julio Barros, economist at Daycoval Asset.

Kayo Miguel, chief economist at XP, highlighted maintaining the final interest rate outlook at 13.75%. “In our opinion, this level can be reached with two additional increases (at a more moderate pace) in June and August, or even with Copom persuading itself to increase one additional point at the next meeting, as we believe that the inflation scenario will remain challenging in the coming months,” As he says.

England

8:00 am: BC in England decides monetary policy

United States of America

9:30 am: Change in the productivity of the non-agricultural sector

9:30 a.m.: Unemployment insurance claims, with Refinitiv unanimous on 182,000 claims

10:15 a.m.: Fed Chairman John Williams’ speech

3. Rep. from Auxillo of Brazil

The Senate approved the temporary measure guaranteeing a minimum monthly payment of R$400 to beneficiaries of the Auxílio Brasil Program, the program that replaced the Bolsa Família in the Bolsonaro government. The text has been symbolically approved and will be sent for a presidential sanction. Initially, the procedure involved transferring R$400 until the month of December only.

Pacheco wants to vote on direct income tax reform in plenary

Senate President Rodrigo Pacheco (PSD-MG) wants to discuss the income tax reform law directly in plenary, without a prior vote in the Committee on Economic Affairs (CAE). For this, there will have to be a change of order format: Senator Angelo Coronel (PSD-BA) will replace Fernando Bezerra Coelho (MDB-PE), who was the head of government in the Chamber of Deputies, and will be the new official for a situation that appears final.

Pacheco’s idea, according to sources reputed to Valor, is to restrict the text of the corporate income tax (IRPJ) reduction and tax dividends, as a form of compensation. This is because one of Angelou’s proposals was to update the Individual Income Tax Schedule (IRPF), which ended up stalling negotiations between Parliament and the economic team.

Analysts say the bill in the House wants to suspend energy amendments, but it’s illegal

Senator Marcelo Castro (MDB-PI), chosen as General Rapporteur for the 2023 budget in Congress, has advocated excluding Auxílio Brasil’s expenditures from the public spending cap.

The parliamentarian stated at a press conference after the inauguration of the mixed budget committee that he supports such a proposal. On Wednesday, the Senate must approve the temporary measure guaranteeing a minimum payment of R$400 per month on a permanent basis to aid recipients.

The room depends on the nurses’ salary limit

This Wednesday (4), the House of Representatives approved, by 449 in favor and 12 against, a bill establishing a minimum salary for nurses, technicians, nursing assistants and midwives. Coming from the Senate, the matter goes to presidential punishment.

A decree facilitating the entry of 100,000 trainees into the market

President Jair Bolsonaro signed a decree that, according to the government, facilitates the introduction of at least 100,000 trainees into the labor market. The script was announced at a ceremony at the Planalto Palace.

The defense minister said the armed forces are committed to elections and democracy, according to Fox

The President of the Federal Supreme Court (STF), Minister Luis Foo, said on Wednesday that Defense Minister, General Paulo Sergio Nogueira de Oliveira, told him in a meeting the day before that the armed forces were committed to elections and democracy in the country.

“Also yesterday afternoon, I met the Minister of Defense, General Paulo Sergio Nogueira de Oliveira, who requested the meeting after his inauguration as Minister of Defense, an opportunity to express the commitment of the Armed Forces to the electoral process and to the electoral process,” he said at the opening of today’s Supreme Court hearing.

4. Covid

Last Wednesday (4), Brazil recorded 51 deaths and 20,556 cases of coronavirus within 24 hours, according to information from the Media Union, at 8 pm.

The 7-day moving average for Covid deaths in Brazil is 93, down 7% compared to the 14-day level before that.

The seven-day moving average of new cases was 14,855, which is an 8% increase over the level 14 days ago.

And it reached 164,428,786 people who were fully vaccinated against Covid in Brazil, equivalent to 76.54% of the population.

The number of people who received at least the first dose of vaccines was 1,773,315, which is 82.55% of the population.

The booster dose was administered to 87,213,268 people, or 40.6% of the population.

5. Corporate radar

Gerdau (GGBR4) and Metalúrgica Gerdau (GOAU4) publish first-quarter numbers, all before the opening.

At night, Petrobras (PETR4), Petroreconcavo (RECV3), Bradesco (BBDC4), Lojas Renner (LREN3) and Unidas (LCAM3) publish their balance sheets.

ambif (ABEV3)

ambif (ABEV3) Adjusted net income of R$3.551 billion in the first quarter of 2022 (1Q22), up 28.6% year on year. Net income was R$3.528 billion in the first quarter of 2022 (Q1 22), which represents a growth of 29.1% compared to the same quarter of 2021.

Adjusted earnings before interest, tax, depreciation, and amortization (Ebitda) grew 3.7% in the first quarter of 22, totaling R$5.522 billion.

Susanoo (SUZB3)

Susano (SUZB3) It made a profit of R$10.306 billion in the first quarter of this yearreversed a loss of 2.755 billion Brazilian riyals in the same period last year.

Adjusted earnings before interest, tax, depreciation and amortization (Ebitda) rose 5% to R$5.121 billion, with a margin of 53%, two percentage points lower than a year earlier.

BRF (BRFS3)

BRF (BRFS3) A net loss, whether corporate or from continuing operations, was recorded at R$1.5 billionReversing the profit of 22 million Brazilian riyals from the previous year.

CSN (CSNA3)

CSN Registered (CSNA3) Net profit of 1.364 billion Brazilian real in the first quarterwhich is 76% lower than R$5.697 billion in the same period last year.

petorio (3 . ago)

Petrorio (PRIO3) It recorded a net income of $223.4 million in the first quarter of this yearreversing a loss of $12.009 million from the previous year.

Cumulative average (PCAR3)

Cumulative GPA (PCAR3) It recorded a consolidated net income of 1.399 billion R$ in the first quartera higher figure than the previous year’s figure of 112 million Brazilian riyals.

However, GPA reported that looking at the net result of the controllers, from continuing operations, the result was a loss of R$111 million, compared to a profit of R$103 million in the previous year.

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