US and European stock futures rise ahead of US inflation;  Retail in Brazil and more market topics today

US and European stock futures rise ahead of US inflation; Retail in Brazil and more market topics today

Asian markets closed in the red, while New York futures and European stocks traded higher on Wednesday morning (10), awaiting the latest reading of the Consumer Price Index (CPI, its English acronym) for July, scheduled for 9:30 a.m. ( Brasilia time), which should provide further indications about the pace of interest rate hikes by the Federal Reserve (Fed).

In the median forecast of the Refinitiv consensus, the CPI should advance 0.2% in July, compared to June.

The Federal Reserve will review CPI data, along with other key economic data, before its September meeting, when it is expected to raise interest rates again.

Corporate earnings season continues, with Disney’s quarterly earnings after markets close.

In Asia, stocks fell on Wednesday as investors digested Chinese inflation data and looked at the US CPI report.

Here, after the IPCA contraction for July bolstered the Copom minutes’ signal for an end-of-cycle rally of 13.75%, retail sales data for June was released today.

In the corporate space, 3R Petroleum (RRRP3), Aliance Sonae (ALSO3), Banco do Brasil (BBAS3), Braskem (BRKM5), BRF (BRFS3), Minerva (BEEF3) and many others report their results today.

Check out more highlights:

1. Global Scholarships

United State

US index futures are higher this morning, as investors await the latest report on the Consumer Price Index (CPI), which may confirm or refute hopes that higher prices have stabilized. Economists expect the report to show that inflation has slowed slightly, led by falling oil prices.

Watch the performance of futures markets:

  • Dow Jones Contracts (USA), +0.25%
  • S&P 500 futures contract (US), +0.33%
  • Nasdaq Future (US), +0.45%


Asian markets closed lower on Wednesday. Investors are watching inflation data in China and awaiting the US CPI report.

China’s producer price index for July rose 4.2% from a year earlier, missing a forecast of 4.8% in a Reuters poll.

Consumer prices rose 2.7% in July compared to the same period in 2021, the highest level since July 2020. Analysts had expected the figure to be 2.9%.

“Live inflationary pressures remain limited in China as sporadic shutdowns have affected consumer spending and general economic activity,” Carol Kong, senior associates for international economics and currency strategy at the Commonwealth Bank, wrote in a note on Wednesday ahead of the release. data. “The relatively moderate inflationary momentum in China contrasts with the persistently strong inflation in the United States,” the note said.

In the corporate space, Toyota Motor Corporation has announced that it will suspend some production operations due to positive cases of Covid in the workplace.

  • Shanghai SE (China), -0.54%
  • Nikkei (Japan), -0.65%
  • Hang Seng Index (Hong Kong) -1.96%
  • Kospi (South Korea), -0.90%


European markets are running with slight gains, while investors await US inflation data.

On the European data front, German consumer price inflation at the end of July came in at 7.5% yoy and 0.9% monthly, roughly in line with expectations.

Results remain a major factor in the price movements of individual European stocks. Ahold Delhaize, ABN AMRO, E.On, TUI Group, Metro, Deliveroo, Prudential and Aviva were among the top reporting companies at the session.

  • FTSE 100 (UK), +0.03%
  • Dax (Germany), +0.32%
  • CAC 40 (France), +0.04%
  • FTSE MIB (Italy), +0.38%


Oil prices later fell after industry data showed that US crude stocks rose unexpectedly last week, indicating a possible weakness in demand.

US crude stocks rose by about 2.2 million barrels in the week ending August 5, according to the American Petroleum Institute. Analysts expected a slight decrease of 400,000 barrels in oil inventories.

  • West Texas Intermediate crude, down -0.63% to $89.93 a barrel
  • Brent crude, down -0.62% to $95.71 a barrel
  • Iron ore traded on the Dalian Stock Exchange fell 1.70% to 724.50 yuan, equivalent to $131.95 US dollars.


  • Bitcoin, -2.93% to $23,112.33 (from 24 hours ago)

2. Schedule

In Brazil, retail sales were halted for the month of June. Itau expects a 1.5% decline in the core index with respect to May. For the broad index that includes vehicles and building materials, we expect a decline of 1.3% on the margin.

Today, it also has the US Consumer Price Index (CPI). In the median forecast of the Refinitiv consensus, the CPI registered a 0.2% increase in July, compared to June.


9:00 a.m.: Retail sales for June, with Refinitiv consensus forecasting a 1% monthly drop and stabilizing year-over-year

10:00 am: Paulo Guedes, Minister of Economy, participates in a meeting with the President of the Securities and Exchange Commission (CVM), Joao Pedro Nascimento

2:30 pm: Weekly FX Stream

3:00 p.m.: Guedes participates in a meeting with the Stellantis Group’s President for South America, Antonio Velosa

5 p.m.: Guedes meets with President Jair Bolsonaro

United States of America

9:30 a.m.: Consumer Price Index (CPI) for July, with a monthly increase of 0.2% and an annual increase of 8.7%.

11 am: Wholesale stock for June

11:30 am: Change in weekly oil stocks – EIA

3 p.m.: Federal budget

3:00 p.m.: Speech by Neel Kashkari, Chairman of the Federal Reserve Board, in Minneapolis

3. Bolsonaro promises financial toughness

The Bolsonaro government’s plan for re-election promises a review of the Brazilian tax system, while increasing progress and improving social security. Bolsonaro plans to expand the progressive tax system, with taxing “the super-rich” to make it easier for the lower classes to collect taxes. “Consolidation” of the fiscal adjustment, if Bolsonaro wins another term, respect for the inflation targeting regime and the independence of British Columbia are also included in the draft program of the Bolsonaro government.

In addition, the president promises to exempt those who earn 5 times the minimum wage from income tax.

Guedes says the unemployment rate rises to 8% before the end of the year

Last Tuesday, Economy Minister Paulo Guedes predicted that Brazil’s unemployment rate would fall to 8% by the end of the year.

“Brazil will be surprised. The unemployment rate, which was 12% when the disease arrived, went to 14.9%, nearly 15%, and went back to 12%, 11%, 10%, 9.3%, and rose to 8% before the end of the year. And 8 % have not seen each other since 2003, 2004,” the minister said during the opening ceremony of the Abrasel Conference, an association that brings together bars and restaurants. “We will end up with the lowest unemployment rate in 10 or 15 years.”

Fashin says “Democracy bends, but it does not bend, and it does not break with fake news”

The President of the Supreme Electoral Tribunal, Minister Edson Fachin, participated yesterday in the last session assigned to the Tribunal. Fachin will succeed Minister Alexandre de Moraes next week, who is due to be inaugurated on August 16.

Fachin is a categorical advocate of democracy and has said he believes the October elections will be held in a peaceful atmosphere.

I am unwaveringly sure that democracy is bowing down, but it does not bow, nor break with fake news. He concluded by saying that I am more than sure that the Brazilian people will elect in peace, security and transparency next October a third of the senators, 513 federal deputies, more than a thousand state representatives and 27 governors.

4. Covid

Last Tuesday (9), Brazil recorded 359 deaths and 30,994 cases of coronavirus within 24 hours, according to information received from the Media Union, at 8 pm.

The 7-day moving average of deaths from Covid in Brazil is 219, a 4% decrease compared to the 14-day level before that.

The seven-day moving average of new cases was 25,051, which is a 31% decrease from the level 14 days ago.

The number of people fully vaccinated against Covid in Brazil has reached 169,425,890, equivalent to 78.87% of the population.

180,231,586 people received at least the first dose of vaccines, representing 83.9% of the population.

A booster dose was administered to 102,140,692 people, or 47.55% of the population.

5. Corporate radar

Results season is gaining intensity this Wednesday. After the shutdown, 3R Petroleum, Aliance Sonae, Banco do Brasil, Banrisul, Braskem, BRF, C&A, Equatorial Energia, Minerva Foods, MRV, Petz, Positivo, Santos Brasil, SLC Agrícola, SulAmerica, Taesa and Vittia Fertilizantes, among others. , release their numbers for the quarter.

B3 (B3SA3) recorded a 22.8% decrease in average daily financial volume in July compared to July/21.

According to the operational preview of B3, the average daily financial volume was R$22.392 billion in July, down 22% compared to July last year and 19.4% compared to June, which amounted to R$27.770 billion. Meanwhile, the number of deposit accounts reached 5.281 million, up 35.5% in one year and 1.1% from June, while the number of investors (individual companies) reached 4.460 million, up 37.0% (year) and 1.2% (month).

The CCR (CCRO3) reported that total vehicular traffic on highways decreased by 1.5% in July, compared to the same month in 2021.

Embraer (EMBR3) and Avantto have announced the signing of the Embraer Executive Care program contract to support the company’s fleet of business jets. Avantto has a fleet of seven Phenom aircraft, four Phenom 100 and three Phenom 300. Currently, more than 700 aircraft are part of Embraer Executive Care globally.

UNIP6 reports that it has terminated the establishment of the joint venture with Atlas Renewable Energy by acquiring a portion of the shares issued by special purpose companies (SPEs) owned by Atlas Renewable Energy, after fulfilling the conditions set out in the purchase option on July 16 2021. The purpose of the operation is to develop solar power generation projects in the city of Pirapora (MG).

Tourist company CVC (CVCB3) posted a net loss of R$94.8 million in the second quarter of 2022 (Q222), down 46% year-on-year, it said Tuesday (9).

EBITDA was negative R$600,000, down 99.5% from the negative R$123.8 million result recorded between April and June. 2021. Adjusted Ebitda was negative R$15.5 million, down 88.2% YoY.

(in collaboration with Estadão, Reuters and Agência Brasil)

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