B3’s reaction to the Fed and Moody’s upon return from the holiday; Bradesco and Apple balance sheets

On the return of the Labor Day holiday, the Brazilian Stock Exchange reflects the maintenance of interest rates in the United States and the improvement of the outlook for Brazil’s credit rating by Moody’s, from stable to positive, which supported the 0.5% increase in the Dow index Jones Brazil Titans 20 ADR (BR20) and 0.39% of ETF EWZ the day before.

Already in the balance sheet season, Bradesco recorded this Thursday morning (2) recurring net profit of R$4.2 billion in the first quarter of 2024, an increase of 46.3% compared to the previous quarter, but a drop of 1 .6% on an annual basis.

In the US, after closing, Apple’s quarterly numbers come out. In addition to the technology giant’s balance sheet, investors will be paying attention to data on weekly unemployment insurance claims, worker productivity in the first quarter and unit labor costs, as well as March numbers on the trade deficit and labor orders. factories.

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1.World Exchanges

U.S

US futures indexes operate higher, as investors reflect the Fed’s maintenance of interest rates the day before and await more corporate results and important data on the labor markets.

In the closely watched press conference, the president of the Fed, Jerome Powell, stated that the BC will keep interest rates in the American economy at the current level for as long as necessary. The day before, the New York stock exchanges closed without a single signal after Powell also stated that it was unlikely that the next interest rate change by the authority would be an increase. The situation became more positive for the indices, but there was a loss of momentum in the final stretch.

See how futures markets perform:

Dow Jones Futures: +0.34%

S&P 500 Future: +0.58%

Nasdaq Futures: +0.81%

Asia

Asian markets ended trading without a single direction, mirroring Wall Street’s behavior yesterday after the Federal Reserve’s interest rate announcement. In mainland China, markets have been closed since yesterday and will only reopen on Monday (6), due to a holiday.

Shanghai SE (China), closed for public holidays

Nikkei (Japan): -0.10%

Hang Seng Index (Hong Kong): +2.50%

Kospi (South Korea): -0.31%

ASX 200 (Australia): +0.23%

Europe

European stocks opened with no single direction as global markets react to the US Federal Reserve’s (Fed) latest monetary policy decision and a series of corporate earnings.

The region’s largest company, Novo Nordisk, beat profit estimates as demand for its weight-loss drugs continued to grow. Oil giant Shell also outperformed due to higher refining margins and robust oil trading.

FTSE 100 (UK): +0.34%

DAX (Germany): +0.03%

CAC 40 (France): -0.78%

FTSE MIB (Italy): +0.09%

STOXX 600: -0.20%

Commodities

Oil prices are trading higher, with the prospect that the US could start buying oil for its oil reserve, after prices fell to a seven-week low on hopes of an Israel-Gaza ceasefire.

WTI oil, +0.65%, at $79.51 a barrel

Brent crude, +0.74%, at $84.06 a barrel

Bitcoin

• Bitcoin, +0.50% to US$57,775.26 (compared to the price 24 hours ago)

2. Agenda

Today’s agenda highlights data from the United States trade balance and data from Brazilian industry.

Brazil

8:30 am: March current transactions; LSEG consensus predicts deficit of US$ 3.1 billion

10am: April manufacturing PMI

2pm: Campos Neto, president of the BC, meets with Fernando Haddad, Minister of Finance

2:30 pm: Weekly exchange rate flow

USA

9:30 am: Weekly unemployment insurance claims

9:30 am: March trade balance; LSEG consensus predicts deficit of US$69.1 billion

11am: Industry orders for March

3. Economic news

Moody’s agency improves outlook for Brazil’s credit rating

The risk rating agency Moody’s revised upwards the outlook for Brazil’s credit rating last Wednesday (1st). Currently, the country’s rating is Ba2, which indicates a greater risk for foreign investments. The institution maintained the rating, but changed the assessment perspective from “stable” to “positive”, signaling that it may raise this rating in the future.

Lula sanctions law that changes the Income Tax table

Last Wednesday (1st), during an event with workers in the east zone of São Paulo, President Luiz Inácio Lula da Silva sanctioned Bill No. 81/2024 which corrects the Income Tax table, increasing the exemption for those who receives up to two minimum wages per month. He reaffirmed his promise that, by the end of his term in 2026, he would approve exemption from paying income tax for those earning up to R$5,000 per month.

4. Political news

Lula “burns out” in elections and asks for a vote for Boulos during an event in São Paulo

President Luiz Inácio Lula da Silva (PT) asked for votes in advance, last Wednesday (1st), for federal deputy Guilherme Boulos (PSOL-SP), pre-candidate for mayor of São Paulo.

5. Corporate Radar

Vale (VALUE3)

Vale (VALE3) reported on Tuesday (30) that it concluded the sale of 10% of Vale Base Metals to Manara Minerals for US$2.5 billion, according to a statement sent to the Securities and Exchange Commission (CVM).

On Wednesday, the mining company announced that it will present its next president by December 3, after the board approved, in September, a triple list of candidates to be presented by a consultancy company. The company also said in a communication to the market that the new president will take office on January 1, 2025.

(With Estadão, Reuters and Agência Brasil)