Petrobras and Focus are highlights at the start of a week marked by inflation in the USA

This week marks the end of the results season for the first quarter of 2024, with important announcements, such as Petrobras (PETR4) this Monday (13), after the markets close. The Central Bank releases the Focus Report at 8:25 am (Brasília time), the first after the divided decision of the Monetary Policy Committee (Copom) that cut the Selic rate to 10.50% per year.

The minutes of the last Copom meeting, to be released tomorrow (14), will also be closely watched by investors, as 5 members of the committee – including the president of the Central Bank – voted for a reduction of 0.25 percentage points , while 4 directors opted for a cut of 0.50 pp. Unlike the beginning of the cycle, which also began with a split score, the statement did not explain the reasons for each group’s votes. Thus, the draft will provide more information about the BC’s reading of the domestic situation and the global scenario.

In the United States, the product price index (PPI) for April will be presented on Tuesday. The following day, the consumer price index (CPI) will be presented, with LSEG forecasting an increase of 0.4% in the monthly comparison.

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1.World Exchanges

U.S

US index futures are trading in the black, with investors assembling positions ahead of the release of new inflation data this week. The CPI will serve as a key indicator of whether or not stocks can remain in a stable position after a stronger-than-expected earnings season in the first quarter.

Results so far have helped stocks remain resilient despite inflation remaining elevated. About 92% of companies in the S&P 500 had reported as of Friday, with 80% of companies beating Wall Street forecasts, according to data from FactSet.

See how futures markets perform:

Dow Jones Futures: +0.07%

S&P 500 Future: +0.14%

Nasdaq Futures: +0.25%

Asia

Asian markets closed with no direction, with those in China suffering losses following local inflation and credit data and amid expectations that the US will raise tariffs on Chinese clean energy products, especially electric vehicles.

Shanghai SE (China), -0.21%

Nikkei (Japan): -0.13%

Hang Seng Index (Hong Kong): +0.80%

Kospi (South Korea): -0.02%

ASX 200 (Australia): +0.01%

Europe

European markets are mixed at the start of the new trading week and investors will be keeping an eye on US inflation data.

FTSE 100 (UK): -0.01%

DAX (Germany): -0.16%

CAC 40 (France): -0.16%

FTSE MIB (Italy): +0.26%

STOXX 600: -0.05%

Commodities

Oil prices are operating higher, after closing down 1% last Friday, with comments from members of the US central bank indicating higher interest rates for longer, which could harm demand by the largest consumers of crude oil in the world.

Iron ore prices in China closed higher, as weaker-than-expected credit data in the world’s second-largest economy partially overshadowed support from the prospect of more bond issuances by the country’s authorities to stimulate economic growth.

WTI oil, +0.29%, at $78.49 a barrel

Brent crude, +0.19%, at $82.95 a barrel

Iron ore traded on the Dalian exchange rose 2.42% to 888.00 yuan, equivalent to US$122.75

Bitcoin

• Bitcoin, +2.77% to US$63,054.00 (compared to the price 24 hours ago)

2. Agenda

The week’s agenda highlights the release of inflation data in the United States and the Copom minutes in Brazil.

Brazil

8:25 am: Focus Bulletin

9am: President Lula meets with the Minister of the Civil House, Rui Costa, and Minister of Finance, Fernando Haddad

3. Economic news

Rollout for MEI and micro and small businesses starts this Monday

Starting this Monday (13), banks will begin offering an alternative for renegotiating bank debts for Individual Microentrepreneurs (MEI) and micro and small companies that earn up to R$4.8 million annually. Unpaid debts will be renegotiated until January 23, 2024. The action is part of the Desenrola Pequenos Negócios Program, an initiative of the Ministry of Finance, Ministry of Entrepreneurship, Microenterprise and Small Business with the support of the Brazilian Federation of Banks ( Febraban).

4. Political news

Federal government publishes new MP with credit of R$12 billion for RS

The government published on Saturday night (11), in the Official Gazette of the Union (DOU), a new provisional measure, with the opening of R$ 12.1 billion in extraordinary credit, so that federal bodies can act to face the consequences of heavy rains in Rio Grande do Sul.

Haddad and Leite will discuss suspension of RS debt

The governor of Rio Grande do Sul, Eduardo Leite (PSDB), will discuss with Fernando Haddad, Minister of Finance, the possible suspension of the state’s debt with the Union this Monday (13). The meeting should be via videoconference, as informed by the Minister of the Social Communication Secretariat, Paulo Pimenta.

5. Corporate Radar

The shareholders of Oi (OIBR3), in judicial recovery, approved the reverse split of the company’s common shares in a 10 to 1 ratio.

Energisa (ENGI11) announced that its subsidiary Energisa Distribuição de Gás (EDG) signed an agreement to acquire 100% of the shares of Infra Gás e Energia for R$890 million.

(With Estadão, Reuters and Agência Brasil)