US employment report, Fed speeches, exchange rate intervention in Brazil and more

US employment report, Fed speeches, exchange rate intervention in Brazil and more
US employment report, Fed speeches, exchange rate intervention in Brazil and more
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Future indices in the United States operate lower this Tuesday (02), with investors waiting for the survey on job vacancies and labor turnover (Jolts) for February, which will be released at 11 am (Brasília time). In addition to the labor market data, several members of the Federal Reserve (Fed) are scheduled to speak at today’s session.

On the domestic agenda, producer inflation data for February, credit market statistics and the weekly Focus Bulletin will be released. The Central Bank will intervene in the exchange rate for the first time in more than a year, with an additional exchange swap auction equivalent to US$ 1 billion. Meanwhile, President Lula participates in events in Rio de Janeiro.

1.World Exchanges

U.S

The day before, the Dow Jones fell almost 241 points, or 0.6%, while the S&P 500
fell 0.2%. The tech-heavy Nasdaq Composite bucked the trend by finishing 0.1% higher.

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The moves came after industrial sector data surpassed economists’ expectations, casting doubt on the urgency of a rate cut by the Fed. Future Fed funds data now suggests a 58% probability that the central bank will cut rates at its June meeting, according to the CME FedWatch tool.

See how futures markets perform:

Dow Jones Future: -0.28%

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S&P 500 Future: -0.09%

Nasdaq Futures: -0.11%

Asia

Asia and the Pacific markets closed with no single direction, with gains led by Hong Kong amid excitement over Xiaomi’s debut in the electric vehicle market.

Elsewhere in Asia, Japan’s Nikkei rose marginally 0.09% in Tokyo to 39,838.91 and South Korea’s Kospi rose 0.19% in Seoul to 2,753.16, with both indices supported by shares linked to chips, while Taiex registered a gain of 1.21% in Taiwan, at 20,466.57 points. On the other hand, markets in mainland China were in the red, interrupting a sequence of three positive trading sessions.

Shanghai SE (China), -0.08%

Nikkei (Japan): +0.09%

Hang Seng Index (Hong Kong): +2.36%

Kospi (South Korea): +0.19%

ASX 200 (Australia): -0.11%

Europe

European markets are mostly trading higher, with major markets returning to action after the Easter weekend. Investors will digest new data on euro zone manufacturing, German inflation and UK house prices.

The HCOB euro zone manufacturing purchasing managers index (PMI) fell to 46.1 in March from 46.5 in February. UK house prices rose 1.6% in March compared to the previous year, marking the fastest increase since December 2022.

FTSE 100 (UK): +0.35%

DAX (Germany): +0.04%

CAC 40 (France): +0.22%

FTSE MIB (Italy): +0.19%

STOXX 600: +0.22%

Commodities

Oil prices rise this Tuesday, based on upbeat industrial data and escalating tensions in the Middle East. Iron ore prices in China also closed positive.

WTI oil, +1.77%, at $85.19 a barrel

Brent crude, +1.62%, at $88.85 a barrel

Iron ore traded on the Dalian exchange rose 3.09% to 768 yuan, equivalent to US$106.14

Bitcoin

  • Bitcoin, -4.72% at US$66,156.77 (compared to the price 24 hours ago)

2. Agenda

This Tuesday’s agenda features the February Jolts report in the United States and producer inflation in Brazil.

Brazil

8:25 am: Focus Bulletin

8:30 am: February credit statistics

9am: February producer prices

11 am: President Lula participates in the inauguration ceremony of IMPA Tech and the start of classes for the 1st class of Bachelor’s Degree in Mathematics of Technology and Innovation

3pm: Lula takes part in a ceremony announcing the start of dredging works on the São Lourenço Channel, in Niterói

USA

11am: Jolts Report February

11:10 am: Speech by Michelle Bowman

11am: Industry orders in February

1pm: Speech by John Williams

1:05 pm: Speech by Loretta Master

2:30 pm: Speech by Mary Daly

3. Economic news

Pacheco drops municipal re-encumbrance

The president of Congress, Rodrigo Pacheco (PSD-MG), extended part of provisional measure (MP) 1202, which deals with tax benefits and social security relief, for another 60 days. Pacheco removed sections that dealt with the reinstatement of the social security rate for municipalities with up to 140 thousand inhabitants. The senator had already committed to mayors with the end of the reimbursement.

BC will intervene in the exchange rate for the first time in more than a year

The Central Bank will intervene in the exchange rate for the first time in more than a year this Tuesday (2), with an additional exchange rate swap auction of up to 20 thousand contracts, equivalent to US$ 1 billion. Last year, the BC did not put new money on the market, it only promoted the rollover of lines and the stock of currency swaps.

4. Political news

STF has majority of votes against “moderating power” of the Armed Forces

Last Monday (1st), the Federal Supreme Court (STF) formed a majority of 6 votes to 0 against the interpretation that the Armed Forces can exercise “moderating power” in the country. The Supreme Court judges an action filed in 2020 by the PDT to prevent Article 142 of the Constitution from being used to justify the use of the Armed Forces to interfere in the functioning of democratic institutions.

TRE rapporteur votes against the impeachment of Sérgio Moro

Judge Luciano Carrasco Falavinha Souza, from the Regional Electoral Court (TRE) of Paraná, voted against the impeachment of senator Sergio Moro (União-PR). After the rapporteur’s vote, the session was suspended and will resume next Wednesday (3). The votes of six judges are missing.

5. Corporate Radar

Enauta (ENAT3) and 3R Petroleum (RRRP3)

The oil company Enauta (ENAT3) proposed a merger with 3R Petroleum (RRRP3). In a letter attached to the statement, Enauta describes the proposal, through which there would be an exchange of shares, in which Enauta would retain 47% of the combined company and 3R shareholders would retain 53%.

(With Estadão, Reuters and Agência Brasil)

The article is in Portuguese

Tags: employment report Fed speeches exchange rate intervention Brazil

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