Stocks run with no specific direction after weak data in China, in a week marked by minutes from Fomc;  More Market Topics Today

Stocks run with no specific direction after weak data in China, in a week marked by minutes from Fomc; More Market Topics Today

US futures indices rose on Monday (15), as investors awaited the minutes of the latest meeting of the Federal Reserve’s Open Market Committee (FOMC), scheduled for Wednesday (17), as well as other important indicators of activity that should move bets. On interest rates, after declining inflation, indicates the possibility of a less severe monetary tightening.

Last week in the US, the Consumer Price Index (CPI) was flat from June to July, the Producer Price Index (PPI) showed a sudden drop and import prices fell more than expected.

This helped ease investor concerns about the growth of the US economy and the pace of monetary tightening promoted by the Federal Reserve.

Investors are also awaiting a week of results from major retailers including Home Depot, Walmart and Target, and are looking for clues about how their business was affected by inflation and other macro challenges in the last quarter.

Retail sales data is still due this week.

Asian markets closed mixed after disappointing data from the Chinese economy and a surprise interest rate cut.

Industrial production and retail sales in China fell short of consensus on Monday, but the People’s Bank of China cut its benchmark interest rate to stimulate the economy.

In Brazil, the campaign of candidates to run in the October elections officially begins. From Thursday (18), they will be able to distribute posters, flyers and advertise advertisements on the Internet.

In terms of indicators, the IBC-Br, better known as the “GDP Preview”, will be released on Monday (15) by the Central Bank and Itau expects a rise of 0.3% compared to May.

The season for the announcement of Brazilian corporate results comes to an end on Monday (15). CSN (CSNA3), Itaúsa (ITSA4) and Nubank (NUBR33) are notable companies that have released their results.

1. Global Scholarships

United State

US futures traded lower on Monday after some positive inflation data helped lift the major indices and ahead of a big week of gains for retail traders.

Last week, the S&P 500, Nasdaq Composite and Dow Jones rose nearly 3% on the back of economic data that indicated that inflationary pressures may ease slightly. The consumer price index stabilized from June to July, the producer price index showed a surprise decline and import prices fell more than expected.

Watch the performance of futures markets:

  • Dow Jones Future (USA), -0.38%
  • S&P 500 futures contract (US), -0.45%
  • Nasdaq Future (USA), -0.45%

Asia

Asian markets closed with no specific direction on Monday (15) after industrial production and retail sales data from China for July missed expectations. In addition, the People’s Bank of China cut the benchmark interest rate to stimulate the economy of the Asian giant.

Meanwhile, markets in India and South Korea were closed for a public holiday on Monday.

  • Shanghai SE (China), -0.02%
  • Nikkei (Japan), +14%
  • Hang Seng Index (Hong Kong), -0.67%
  • Kospi (South Korea), closed on public holidays

Europe

European markets are running with slight gains as they struggle to build on the positive trend seen at last week’s close.

European shares closed higher last Friday as investors digested economic data from the region, including the preliminary reading of the UK’s second-quarter GDP, inflation impressions for July from France, Spain and Italy, and industrial production from the eurozone for June.

  • FTSE 100 (UK), +0.13%
  • Dax (Germany), +0.08%
  • CAC 40 (France), +0.19%
  • FTSE MIB (Italy), +0.49%

goods

Crude oil prices opened the week lower after Saudi Aramco said it was ready to increase production while production resumes at several offshore platforms in the Gulf of Mexico after a brief break last week.

Chief Executive Officer Amin Nasser told reporters on Sunday that the oil company is ready to increase its crude oil production to its maximum capacity of 12 million barrels per day if the Saudi government requests it.

Iron ore futures in Dalian and Singapore fell on Monday amid a flurry of disappointing economic indicators and heatwaves in China, while a sudden interest rate cut by the country’s central bank eased traders’ pessimism.

  • West Texas Intermediate crude, -2.30% at $89.97 a barrel
  • Brent crude rose to 2.16% at $96.03 a barrel
  • Iron ore traded on the Dalian Stock Exchange fell 2.88% to 707.50 yuan, equivalent to 104.53 US dollars.

Bitcoin

  • Bitcoin, -2.53% to $24,055.28 (24 hours ago)

2. Schedule

The IBC-Br, known as the “GDP Preview,” is a highlight of the domestic agenda. The index, which refers to June, is released today (15) and Itai forecasts a rise of 0.3% compared to May. On the same day, the First Focus report was released, with expectations for the economy, after contracting by 0.68% from the IPCA in July.

The international agenda, in turn, brings relevant data. The main minutes are the minutes of the last meeting of the Open Market Committee (FOMC) of the Federal Reserve, the US central bank, scheduled for Wednesday (17). In its last meeting, the monetary authority increased the pace of tightening, raising interest rates by 75 basis points.

On Tuesday (16) US Industrial Production for July will be released. unanimity Refinitiv Expect a 0.3% increase over the previous month. On Wednesday (17), it was the turn of the retail data, around the same month. Average market expectations are for a 0.1% increase compared to June.

“This data, along with the FOMC meeting minutes, will help improve the outlook for the US interest rate,” says a Bradesco report.

In Europe, the highlight is the Eurozone Q2 GDP, which will be released on Wednesday. unanimity Refinitiv Expect a positive variance of 0.7% compared to the first three months of the year and 4% year-over-year. Thursday (18) recorded consumer inflation in the block in July, with median market expectations pointing to a 0.1% rise from the previous month.

Brazil

8:00 a.m.: Roberto Campos Neto, President of British Columbia, delivers a lecture on First Edition – Exclusive to the Millennium: Discussing Inflation in Brazil

8:25 a.m.: Focus Bulletin

9:00 am: June IBC-Br

10:00 am: Paulo Guedes, Minister of Economy, meets with the Special Secretaries

12:30: Guedes has lunch with representatives of Bank of America, in São Paulo, to discuss institutional matters. (closed to pressure)

2:30 p.m.: Guedes held a video conference with Legacy Capital representatives for the public to present his macroeconomic scenario in Sao Paulo. (closed to pressure)

3 p.m.: Weekly Trade Balance

3:00 pm: Guedes participated in the fourth extraordinary meeting of the National Council on Energy Policy – CNPE

8:30 pm: IPEC Polls

United States of America

9:30 am: Empire State Manufacturing Index

11 a.m.: NAHB . Residential Real Estate Market Index

3. Issuance war on Auxílio Brasil maintenance in the amount of 600 Brazilian riyals

Leaders in vote-intention polls for October’s presidential election, Jair Bolsonaro and Luiz Inacio Lula da Silva, fought a copy war on Saturday over the continued R$600 payout of Auxílio Brasil in 2023, during a live broadcast on the Internet.

While participating in the “Cara a Tapa” podcast, President Bolsonaro was alerted by the production of the live program, which shortly before ex-President Lula said, live, with Federal Representative Andre Janones (Avante-MG), that Jair Bolsonaro’s government will end the current value of Auxílio Brasil at the end of the year.

When confronted by podcast presenter Rica Peroni, Bolsonaro denied it, saying the opponent’s statement was a “lie”. In addition to saying he will continue to be “financially responsible,” Bolsonaro stressed that the current benefit is three times greater than that of the Bolsa Família, an earlier programme.

Moraes took over as President of TSE

This Tuesday (16), Minister Alexandre Moraes, of the Federal Supreme Court (STF), assumes the position of President of the Supreme Electoral Tribunal (TSE).

4. Covid

And last Monday (15) Brazil recorded 70 deaths and 7,195 cases of Covid-19 virus within 24 hours, according to information from the Media Union, at 8 pm.

The 7-day moving average of deaths from Covid in Brazil is 214, down 5% compared to the 14-day level before that.

The seven-day moving average of new cases was 22,312, which is a 34% decrease from the previous 14-day level.

The number of people fully vaccinated against Covid in Brazil has reached 169,567,101, which is equivalent to 78.93% of the population.

The number of people who received at least the first dose of vaccines amounted to 180,339,985 people, representing 83.95% of the population.

The booster dose was administered to 10,1022,042 people, or 47.02% of the population.

5. Corporate radar

Eletrobras (ELET3; ELET6) reported net profit of R$1.401 billion in the second quarter, down 45% compared to the same period in 2021. In the year to June, the company’s profit fell 1% to R$4.117 billion.

According to the company, the result was negatively affected by provisions for investment losses in the amount of R$ 890 million, mainly due to the capital contribution made by Firnas to SPE Santo Antônio Energia. In the quarter, there was also weight to record R$694 million in doubtful account provisions (PCLD) related to Amazonas Energia distributor delays.

Cemig’s net income (CMIG4) decreased by 97.44% in the second quarter of this year, compared to the same period in 2021, to R$49.876 million, impacted by the provision of R$1.405 billion created to comply with the provisions of Law 14385/2022, which governs the return of tax exemptions Related to the collection of PIS and Cofins on the basis of the ICMS Account. In the year to June, Cemig’s profit was R$1.505 billion, down 36.45% year-over-year.

In a statement, the company informed that it is awaiting regulation of the law by the National Electric Energy Agency (Aneel) and is evaluating possible future actions related to this issue with legal advisors.

The company’s net revenue in the second quarter grew by 11.7% to R$ 8.213 billion, and in the first half the company recorded revenue of R$ 16,060, an increase of 11.0%. Between April and June, adjusted EBITDA by excluding non-recurring items, grew 37.02% year-over-year to R$1.809 billion.

Cosan (CSAN3) reported adjusted net income of R$53.6 million in the second quarter of 2022 (Q222), 94.6% lower than that reported at the same point in 2021.

Without taking into account the adjustments, the loss would have been R$ 125 million in the second quarter, compared to a positive figure of R$ 996.6 million in the same period in the previous year. According to the company, the performance was affected by the additional financial expenses, which have no monetary impact, in the company, and by the high interest rate, which consequently led to an increase in the cost of indebtedness in all of the group’s business.

Adjusted earnings before interest, tax, depreciation and amortization (Ebitda) totaled R$4.144 billion in the second quarter of ’22, an increase of 34.5% over the second quarter of ’21.

(in collaboration with Estadão, Reuters and Agência Brasil)

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