NY indices rise after sell-off with Powell and before tech earnings: highlights of the day

NY indices rise after sell-off with Powell and before tech earnings: highlights of the day
NY indices rise after sell-off with Powell and before tech earnings: highlights of the day
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New York futures indexes operate higher this Thursday (1), in the first session of February, reversing part of the previous day’s losses, after the Federal Reserve (Fed) kept interest rates stable and signaled that a cut in March is unlikely. Tech companies Amazon, Apple and Meta report results after the closing bell. Meanwhile, European stock exchanges operate mostly lower with attention to inflation data from the Euro Zone and the Bank of England’s interest rate decision.

On the domestic agenda, data on producer inflation and the industrial Purchasing Manager Index (PMI) are available, in addition to the trade balance.

1.World Exchanges

U.S

Wall Street is coming off a bad session for the major indexes. The Dow Jones Industrial fell 0.8% the day before, recording its worst day since December. The S&P 500 fell 1.6% on its worst day since September. The Nasdaq Composite lost 2.2%, its worst session since October. Those losses came after Fed Chairman Jerome Powell dampened investor hopes for a rate cut as early as March. Fed futures cut the probability of a March taper to 34% from 60% just before the announcement.

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See how futures markets perform:

Dow Jones Futures: +0.11%

S&P 500 Future: +0.29%

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Nasdaq Futures: +0.60%

Asia

Asian markets closed without a defined direction this Thursday, a day after the Federal Reserve (Fed, the US central bank) indicated that it does not intend to cut interest rates soon and also amid persistent fears about the outlook for the Chinese economy. New manufacturing activity data from China did not ease concerns about the world’s second-largest economy.

Nikkei (Japan): -0.76%

Hang Seng Index (Hong Kong): +0.52%

Kospi (South Korea): +1.82%

ASX 200 (Australia): -1.20%

Europe

European markets are mostly operating at losses, with investors keeping an eye on the Bank of England’s monetary policy decision. The expectation is that the English central bank will keep interest rates stable at 5.25%, but market players will be watching voting patterns, projections and language for clues about future interest rate cuts.

FTSE 100 (UK): +0.21%

DAX (Germany): -0.20%

CAC 40 (France): -0.62%

FTSE MIB (Italy): -0.05%

STOXX 600: -0.05%

Commodities

Oil prices rise after negative opening. The commodity posted its first monthly gain since September in January, with the US and Iran on the brink of a more direct confrontation in the Middle East. Iron ore prices in China closed slightly lower.

WTI oil, +0.50%, at $76.23 a barrel

Brent crude, +0.42%, at $80.89 a barrel

Iron ore traded on the Dalian exchange fell 0.36%, to 968.00 yuan, equivalent to US$136.27

Bitcoin

  • Bitcoin, -1.35% to US$42,196.00 (compared to the price 24 hours ago)

2. Agenda

Today’s agenda highlights economic activity data from both Brazil and the United States, in addition to unemployment insurance claims.

Brazil

9am: Producer price index

10am: Industrial PMI

11am: Lewandowski takes office as Minister of State for Justice and Public Security, in Brasília

3pm: Trade balance

USA

10:30 am: Weekly unemployment insurance claims

11:45 am: Industrial PMI

12pm: Industrial PMI ISM

3. Economic news

Copom cuts Selic by 0.50 pp to 11.25%

The Monetary Policy Committee (Copom) of the Central Bank of Brazil decided again to cut the Selic, the economy’s basic interest rate, by 0.50 percentage points, and maintained the signal that it will continue monetary easing at this pace for the next few meetings. The rate went from 11.75% to 11.25% per year, in a new unanimous decision among the Committee members.

4. Political news

Pacheco asks for a list of parliamentarians monitored by the “parallel Abin”

The president of the Senate, Rodrigo Pacheco (PSD-MG), sent a letter on Wednesday (31) to the Federal Supreme Court (STF) requesting access to the list of parliamentarians allegedly illegally monitored by the Brazilian Intelligence Agency (Abin) in the government of Jair Bolsonaro.

TRE-PR sets the trial against Moro for February 8

The Regional Electoral Court of Paraná (TRE-PR) scheduled the trial of the process that could lead to the revocation of the mandate of senator Sergio Moro (União-PR) for February 8th. The senator is the target of actions filed by the PT and the PL in the Electoral Court. The parties accuse Moro of abuse of economic power for allegedly carrying out irregular expenses in the pre-campaign period in 2022.

5. Corporate Radar

Petrobras (PETR4)

Petrobras (PETR4) informs that it received, in cash, an amount of R$ 1.819 billion, referring to the complement of firm compensation (earnout) for the 2023 fiscal year, from the Sépia and Atapu block.

(With Estadão, Reuters and Agência Brasil)

The article is in Portuguese

Tags: indices rise selloff Powell tech earnings highlights day

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