Asian stocks closed lower, while New York futures rose on Tuesday morning (23), after major spot stock indexes on Wall Street had their worst day since June the day before, amid mounting concerns about a rate hike.
European markets are doing mixed after EU gas prices jumped 13% as Russia said it would halt gas supplies to Europe for three days at the end of the month due to an unscheduled maintenance order for its main pipeline in Nord. Stream 1. Eurozone in August Purchasing Managers’ Index (PMI) readings showed that business activity contracted for the second month in a row.
Meanwhile, the euro fell below the level with the dollar to hit a two-decade low and was trading at around $0.9915 before markets opened in Europe.
On the corporate front, the US balance sheet crop continues with results from Macy’s, Nordstrom and Dick’s Sporting Goods. New home sales for July will also be released, along with the August PMI and the Richmond Fed survey for August.
Investors’ focus this week will be on the Federal Reserve’s symposium in Jackson Hole, where Federal Reserve Chairman Jerome Powell will address Friday on the central bank’s approach to containing inflation.
The domestic agenda has no relevant indicators scheduled for Tuesday. Thus, the focus of investors should turn to the elections after President Jair Bolsonaro’s participation in the Saturday promoted by Journal Nacional, on TV Globo.
1. Global Scholarships
US index futures are rising, erasing parts of the previous session’s losses, as mounting concerns about interest rates dragged down spot indexes.
Zoom shares tumbled in the after-hours after cutting its full-year forecast, while Palo Alto Networks shares surged after reporting strong quarterly results.
Investors are awaiting a speech by Federal Reserve Chairman Jerome Powell at Jackson Hole later this week, alert to the measures announced by the US central bank to contain the price hike.
Watch the performance of futures markets:
- Dow Jones Futures (USA), +0.18%
- S&P 500 futures contract (US), +0.19%
- Nasdaq Future (US), +0.25%
Asian markets ended the session lower, after US stocks had their worst day since June, amid fears of higher interest rates.
Among the indicators, Singapore’s consumer price index rose to 7% from the previous year, the highest level in 14 years, as food, electricity and gas prices rose. The Central Bank of Singapore said in a statement that global inflation is expected to remain elevated in the next few months.
- Shanghai SE (China), -0.05%
- Nikkei (Japan), -1.19%
- Hang Seng Index (Hong Kong), -0.78%
- Kospi (South Korea), -1.10%
European markets are not in a clear direction on Tuesday, as investors digest the rise in oil and gas prices, as well as fresh economic data from the Eurozone.
Investors are digesting the August readings of the Eurozone Purchasing Managers’ Index (PMI), which showed business activity contracted for the second month in a row.
The S&P Global Composite PMI fell to 49.2 in August from 49.9 in July. A reading below 50 indicates contracture.
- FTSE 100 (UK), -0.43%
- Dax (Germany), +0.25%
- CAC 40 (France), +0.17%
- FTSE MIB (Italy), +0.75%
Oil prices rose in today’s session after Saudi Arabia warned that the Organization of the Petroleum Exporting Countries (OPEC) may cut production to correct the recent decline in oil futures.
Crude, on the other hand, made gains that reflect China’s interest rate cut the previous day, while expectations are for better days for demand ahead of the construction steel peak season.
- West Texas Intermediate crude, +1.54%, at $91.75 a barrel
- Brent crude rose 1.24 percent to $97.68 a barrel
- Iron ore traded on the Dalian Stock Exchange rose 2.47% to 705.00 yuan, or $102.99
- Bitcoin, +1.54% to $21,480.63 (24 hours ago)
In the US, purchasing managers’ indexes (PMIs) and new home sales numbers are expected, an indicator of deterioration in recent months.
Here, without expecting the release of important indicators, investors should follow the statements of the President of the Central Bank, Roberto Campos Neto, in Chile, and the speech of Economy Minister Paulo Guedes, on the events.
8:00 am: Weekly IPC-S Index
9:30 a.m.: Roberto Campos Neto gives a talk at the 18th International Investment Symposium, promoted by Moneda Asset Management, in Santiago, Chile.
9:45 am: President Jair Bolsonaro participates in the opening ceremony of the 2022 Brazil Steel Conference
11:40 a.m.: Paulo Guedes, Minister of Economy, takes part in the main conference at the Brazil Steel Conference 2022
1:00 p.m.: Campos Netos participates in a meeting with Ambassador Paulo Roberto Soares Pacheco to discuss institutional matters, in Santiago, Chile. (closed to pressure)
3:00 pm: Guedes delivers a keynote lecture at the ABIMAQ event
17:00: Bolsonaro participates in the arrival ceremony of the relics of Emperor Dom Pedro I
20:30: Ciro Gomes participates in the interview on Jornal Nacional, on TV Globo
United States of America
10:45 a.m.: PMI for Industry and Services
11 a.m.: Richmond Federal Industrial Monthly Survey
11 a.m.: New Home Sales in July
2:00 p.m.: Initial auction of two-year Treasury notes
17:30: Oil Stocks (API)
8 p.m.: Speech by Fed Director Neil Kashkari
11 a.m.: Consumer Confidence in August
3. Bolsonaro says he will respect the poll results, “as long as the elections are clean and transparent”
Last Monday (22) President Jair Bolsonaro (PL), a candidate for re-election, raised doubts about the Brazilian electoral system, setting conditions for acceptance of the October poll result.
Saturday to Journal Nacional, from Globo TVThe representative appealed part of the letter approved at a meeting with ambassadors on July 18, citing a (confidential) investigation opened by the Federal Police to investigate allegations of fraud in the 2018 elections.
Senate President Congratulates Moraes on Assuming Leadership of TSE
The President of the Senate, Rodrigo Pacheco, met with the President of the Supreme Electoral Tribunal, Minister Alexandre de Moraes, the previous afternoon. The meeting took place at TSE and was, according to Pacheco, to congratulate the judge on his new term as chief justice. In the end, in a conversation with journalists, Pacheco was asked about the electoral process and said that he does not recognize anything but “normal democratic life”.
STF determines effective actions by ANP and Cade on fuel
Federal Supreme Court (STF) Minister Andrei Mendonca has given the National Petroleum Agency (ANP) 30 days to implement effective measures to protect the interests of fuel consumers.
In the same resolution, the Minister also ordered the Administrative Council for Economic Defense (KED) to submit a timetable to determine the regularity of Petrobras’ performance in shaping fuel prices.
The decision was prompted by a measure brought by the federal government to suspend the decision of the National Council on Fiscal Policy (Confaz) dealing with the ICMS group. The injunction was issued in June, but the constitutional procedure is still ongoing.
And last Monday (22) Brazil recorded 159 deaths and 10,994 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 162, down 26% compared to the 14-day level before that.
The seven-day moving average of new cases was 16,086, which is a 36% decrease from the level 14 days ago.
The number of people fully vaccinated against Covid in Brazil has reached 169,838,226, which is equivalent to 79.06% of the population.
180,560,067 people received at least the first dose of vaccines, representing 84.05% of the population.
A booster dose was administered to 1,072,1506 people, or 47.35% of the population.
The day before, Petrobras issued a statement informing that she had been summoned on 11 August to present her defense before seeking an injunction in the lawsuit filed by Senator Jean Paul Prats (Labour) and Anabitro President, Mario Alberto. D. Zoot.
In the lawsuit, pending in the Eleventh District Court of the Federal District in Rio, they requested the annulment of Cayo Pais de Andrade’s appointment as CEO of the state-owned company. The executive, appointed by President Jair Bolsonaro’s government, was approved on June 27 to lead the state-owned company by the board of directors by seven votes to three.
Oi confirmed the day before that the binding proposal submitted by NK 108, a subsidiary of Highline do Brasil II Infraestrutura de Telecomunicações, was the only valid proposal in a competitive process at the Seventh Business Court in Rio de Janeiro. Acquisition of SPE Torres 2 in the amount of R$1.697 billion, to be paid in cash.
Of the total amount, according to the material fact, up to R$ 1.088 billion will be paid on the date of closing the transaction, and the rest, up to R$ 609 million, will be paid up to 2026, depending on the future amount of infrastructure items to be used, which will be reflected in The SPE Torres 2 purchase and sale agreement to be negotiated, explains Oi.
Enauta’s (ENAT3) total production in July was 268.0 thousand boe, or average daily production of 8.6 thousand boe, a decrease of 52.5% compared to June 2022.
“During July, the Atlanta field underwent a scheduled shutdown to meet Department of Labor regulatory requirements, as well as the preparation of the FPSO for re-certification by DNV (Det Norske Veritas), the oil company explains.
Camil (CAML3) has entered into an agreement with Pepsico do Brasil to acquire all shares issued by CIPA Industrial de Produtos Alimentares Ltda. and CIPA Nordeste Industrial de Produtos Alimentares Ltda. The acquired companies manufacture cookies under the main brand “Mabel”, as well as the brands “Doce Vida”, “Mirabel”, “Elbi’s” and “Pavesino”.
Factories in Aparecida de Goiânia (GO) and Itaporanga D’Ajuda (SE) are part of the deal, operated by approximately 800 employees. In addition to this acquisition, the deal also creates a 10-year license from Pepsico for Camil’s “Toddy” cookie brand, and the acquisition of the assets that make up the “Toddy” cookie brand product line.
(with Estadão, Reuters and Agência Brasil)
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