July 2, 2022
US futures slightly lower on Beijing and Netflix stocks: Today's market highlights

US futures slightly lower on Beijing and Netflix stocks: Today’s market highlights

New York futures indices are slightly lower, while European stock markets are up on Wednesday morning, with investors waiting for the release of the Beijing book, which will bring in more information on economic conditions based on the tone of the Federal Reserve (Fed). )

Disappointing results Netflix It also weighs on US markets, which expect new batch companies to release their numbers today. In the US pre-market, Netflix’s share is down about 26%.

The company announced the first decline in the number of its subscribers for more than a decade and forecast a further contraction in the second quarter, a rare low performance of a company hitherto considered a growth engine by investors. Netflix lost 200,000 subscribers in the first quarter of 2022, well below the very simple estimates of 2.5 million new users. The company’s decision to discontinue service in Russia lost 700,000 subscribers.

The market is still watching the escalation of the war in Ukraine and evaluating the latest global economic forecasts of the IMF.

On Tuesday, the IMF downgraded its global growth forecast for 2022 and 2023, saying the economic impact of Russia’s invasion of Ukraine would be far-reaching, exacerbating price pressures and increasing significant policy challenges.

Asian markets closed mixed again, with China surpassing expectations by keeping its benchmark lending rate unchanged.

On the domestic agenda, the Treasury expects auctions of fixed-rate securities and the Federal Audit Court (TCU) privatizes Eletrobras. In addition Usiminas The first quarter 2022 corporate earnings season opens.

See also highlights:

1. Global Scholarship

To us

The U.S. futures fell this morning, hit by Netflix’s weak results in the first quarter, and investors are waiting for a new wave of results today.

Procter & Gamble releases its revenue before it opens, followed by Tesla and United Airlines after the market closes.

In addition to the corporate results, investors are waiting for the current home sales data, which is scheduled to be released at 9:30 a.m., as well as the Beige Book at 3 p.m.

See the performance of futures markets:

  • Dow Jones Future (USA), -0.20%
  • S&P 500 Futures (US), -0.33%
  • Nasdaq Future (USA), -0.56%

Asia

Asian markets did not end in a clear direction, with Chinese stocks causing leading losses in the region’s key markets. The Shanghai joint fell 1.35% to close at 3,151.05 points.

China had its primary one-year borrowing rate of 3.7%, while its five-year LPR flat was 4.6%. Most analysts polled by Reuters expect a reduction in the primary lending rate this month.

As the landscape continues to experience its worst Govt eruption since the initial shock of the epidemic in 2020, investors are watching for signs of political support from the Chinese authorities.

  • Shanghai SE (China), -1.35%
  • Nikkei (Japan), + 0.86%
  • Hong Cheng Index (Hong Kong), -0.40%
  • Cosby (South Korea), -0.01%

Europe

European markets are performing high as investors continue to monitor the war in Ukraine, while assessing the prospects for economic growth.

The conflict entered its second phase, in which fighting erupted in the east of the country. Ukraine said on Monday that Russia had launched an offensive in the eastern Donbass region, which a senior official described as the “second phase” of the war. The eastern city of Kremlin fell to Russian forces on Tuesday, the first city to be captured at this stage of the war, its regional governor said.

  • FTSE 100 (UK), + 0.22%
  • DAX (Germany), + 0.28%
  • CAC 40 (France), + 1.05%
  • FTSE MIB (Italy), + 0.37%

Ingredients

Oil prices soared in the previous session and recovered part of the strong losses, after the International Monetary Fund cut its forecasts for the world economy. In this session, concerns about tight supplies from Russia and Libya dominated, while industrial data showed a decline in U.S. crude inventories last week.

  • WTI oil, + 1.07%, $ 103.66 a barrel
  • Brent crude was up 0.88% at $ 108.19 a barrel
  • Iron ore traded down 1.75% at 898.00 Yuan, equivalent to US $ 140.04 on the Dalian Exchange.

Bitcoin

  • Bitcoin, + 1.84% to $ 41,488.40 (up from 24 hours ago)

2. Table

Today’s highlight of the Beige Book is a report on the economic conditions in the Federal Reserve Districts of the United States Central Bank. The document will be released ahead of the holiday in Brazil on Wednesday (20) and may provide some indication of the US Monetary Commission’s next steps regarding interest rates.

In the morning, there was a difference in US home sales (11:00 am) and EIA oil stocks data (11:30 am).

United States

11 a.m .: Monthly home sales change

11:30 am: Weekly EIA oil reserve change

11:30 a.m .: Speech by Central Bank Director Charles Evans

11:30 a.m .: Speech by Central Bank Director Mary Daly

4pm: Beige Book

3. Brazil already has high interest rates and must first reduce inflation

Economy Minister Paulo Guedes said yesterday (19) that Brazil already has higher interest rates than other economies and that inflation must be reduced first than other countries. The report was presented at an event hosted by the Center for Strategy and International Studies (CSIS) in Washington, DC.

“Covit-19 has practically gone to Brazil. The country is coming back soon. We are spending less now than last year. Brazil already has high interest rates and we will lower inflation first than any other country, ”he said.

According to Guedes, the economic recovery process and reform agenda helped Brazil in the process of joining the Organization for Economic Co-operation and Development (OECD).

The government is blocking the Aid Brazil MP for fear of increasing value

The government has blocked a referendum on a temporary measure (MP) to increase the value of Axilio Brazil to R $ 400. Although this issue has been on the agenda of the meeting several times, it has not been taken up. Bolsanaro wants the MP to be praised only when there is a guarantee that the opposition will not be able to raise the value of the benefit to R $ 600.

The PGR did not see any elements in Bolsanaro’s investigation into suspected malpractices in the MEC

According to the G1 portal, the Attorney General’s Office (PGR) estimates that there is no justification for initiating an investigation against Bolzano for suspected misconduct in the provision of resources by the Ministry of Education (MEC).

Bolzano says the armed forces ‘know how to proceed’ and there can be no doubt about the election

At a ceremony commemorating Army Day yesterday, President Jair Bolsanaro said, “The Armed Forces have not delivered a message, they are there, they know how to proceed.” The statement came after he said the Brazilian electoral system was unreliable and had powers acting outside the constitution.

“Elections that are obscured by suspicion can never be held in Brazil,” he added.

4. Govt

Last Tuesday (19), 190 deaths and 20,795 Covid-19 cases were reported in 24 hours in Brazil, according to the Federation of Press Vehicles, at 20:00.

The moving average of deaths from covid disease in 7 days in Brazil is 102, which is 41% less than the previous 14 days.

The moving average of new cases in seven days was 14,111, which is 36% less than the 14-day previous level.

In Brazil, 163,372,772 people are fully vaccinated against goiter, which equates to 76.05% of the population.

The number of people who took the minimum first dose of the vaccine reached 176,905,008, or 82.35% of the population.

The booster dose was given to 84,066,857 people or 39.13% of the population.

5. Corporate Radar

Electrophores (ELET3;ELET6)

The Federal Court of Audit (TCU) is scheduled to deliver its judgment this Wednesday (20) at 2:30 pm for the second and final phase of Eletrobras’ privatization process.

Minister Vittal du Rogo is the expectation Process display strip, Paulsonaro may delay the government’s intended operation.

OK (VALE3)

VALE3 was announced on Tuesday (19) 63.9 Mt of iron ore finished in the 1st quarter with fine production, 4.1 MT less than the same period last year. This represents a 6% year-on-year and 22.5% year-over-year decline compared to Q4 in 2021.

Assai (ASAI3)

Assay’s net income (ASAI3) R $ 11.4 billion in the first quarter of 2022, The record level for the first quarter represents 21.1% growth over the same period of 2021 and 8.1% compared to 4Q21.

GPA (PCAR3)

GPA (PCAR3) Recorded 2.2% growth in total sales Operations continued in the first quarter of 2022, reaching R $ 11.1 billion. This number refers to Grupo Exito’s “Novo GPA Brazil” and gas station stores in other parts of Latin America.

Carrefour (CRFB3)

At Grupo Carrefour Brazil Integrated Sales R $ 20.8 billion (1Q22) in the first quarter of 2022, up 14.5% year-on-year or + 13.7% compared to petrol.

Braschem (BRKM5)

Braschem (BRKM5) Announced the distribution of filler dividends Total R $ 1.350 billion.

The dividend will be paid on May 2, 2022, based on the April 19 shareholders, with the former dividend trading the shares from April 20th.

CCR (CCRO3)

In addition to the minimum mandatory dividend and additional dividend, the company announced that the dividend payment would be made on April 29, 2022, the distribution of which was approved by the Annual and Extraordinary General Meeting yesterday.

Total R $ 176.625 million, R $ 0.087438205386 per common share.

CCRO3 holders are entitled on April 19, 2022, with the former dividend to be traded on April 20, 2022, as of this date.

(With Reuters)

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