Market agents continue to await the decision of the Monetary Policy Committee (Copom), whose two-day meeting begins this Tuesday (7), amid rising inflation expectations and fears about the potential social and economic effects of the floods in Rio Grande do Sul.
Regarding the earnings season, after the stock exchange closes, numbers from Carrefour, GPA, Telefônica, Raia and Engie come out, while the market reflects Itaú’s result. President Lula gives an interview to radio stations from 9 am.
Download a list of10 Small Caps stocks that, in experts’ opinion, have appreciation potential in the coming months and yearsand attend a free class
Continues after advertising
With no major indicators on the agenda, with only consumer credit data for March scheduled for release in the afternoon, United States stock exchanges are expected to maintain optimism with the start of interest cuts by the Federal Reserve (Fed) in September. Minneapolis Fed President Neel Kashkari is scheduled to speak at 12:30 p.m.
1.World Exchanges
U.S
US index futures have been trading higher, with investors maintaining bullish market sentiment since Friday, when the latest nonfarm payrolls data showed that job growth fell short of expectations in April and unemployment rose. The results eased concerns that the economy was too hot and increased optimism surrounding the Fed’s rate cuts.
Furthermore, Wall Street awaits results from Disney this Tuesday morning.
Continues after advertising
See how futures markets perform:
Asia
Stock markets in Asia and the Pacific closed mostly higher this Tuesday, after Wall Street accumulated gains for another session. Yesterday, the New York stock exchanges closed broadly higher for the third consecutive session, with emphasis on the technology sector, largely encouraged by the possibility that the Federal Reserve (Fed, the US central bank) will begin to reduce interest rates in September , given signs of cooling in the American job market.
- Shanghai SE (China), +0.22%
- Hang Seng Index (Hong Kong): -0.53%
- Kospi (South Korea): +2.16%
- ASX 200 (Australia): +1.44%
Europe
European markets are trading higher, with investors monitoring a flurry of earnings reports and retail data from the region. Banking giant UBS exceeded analysts’ expectations by returning to quarterly net profit after two successive losses. Shares rose 8% in morning trading.
Continues after advertising
Retail sales in the euro zone rose 0.8% in March compared to February, according to data published this Tuesday, 7th, by the official statistics agency of the European Union (EU), Eurostat. The result was in line with the expectations of analysts consulted by FactSet.
- FTSE 100 (UK): +1.02%
- FTSE MIB (Italy): +1.08%
Commodities
Oil prices are trading slightly lower after closing higher the day before, after Israel attacked Rafah, in Gaza, while negotiations for a ceasefire with Hamas remained unresolved. Iron ore prices in China closed slightly lower in today’s session.
- WTI oil, -0.06%, at $78.43 a barrel
- Brent crude, -0.10%, at $83.25 a barrel
- Iron ore traded on the Dalian exchange fell 0.06%, to 886.50 yuan, equivalent to US$125.07
Bitcoin
- Bitcoin, +1.82% at US$64,199.95 (compared to the price 24 hours ago)
2. Agenda
This Tuesday’s agenda brings the start of the Copom meeting in Brazil, while consumer credit is highlighted in the USA.
Continues after advertising
Brazil
- 9am: President Lula gives an interview to radio stations
- 10am: First day of Copom meeting
USA
- 12:30 p.m.: Speech by Minneapolis Fed President Neel Kashkari
- 4pm: Consumer credit for March
- 5:30 pm: Weekly oil stocks (API)
3. Economic news
Federal transfer to RS with parliamentary amendments exceeds R$ 1 billion
The total amount of transfers from the federal government to Rio Grande do Sul with the advance payment of individual parliamentary amendments will exceed R$1 billion. The state is facing the worst flood in history with more than 60% of municipalities hit by heavy rain.
Continues after advertising
Chamber approves decree recognizing calamity in Rio Grande do Sul
The Chamber of Deputies approved last Monday night (6) the draft legislative decree (PDL) 236/2024 sent by the federal government that recognizes the state of public calamity in Rio Grande do Sul until December 31, 2024. The measure must still be approved by the Senate. With this, the limits and deadlines set out in the Fiscal Responsibility Law may be suspended, facilitating and accelerating the transfer of federal resources to the state affected by floods, in the biggest climate crisis in its history.
4. Political news
TSE elects this Tuesday (7) president who will lead the 2024 election
The Superior Electoral Court (TSE) will hold this Tuesday (7) the election that will define the next president of the Court and who will be responsible for leading the 2024 municipal elections.
5. Corporate Radar
Itaú (ITUB4) reported recurring managerial profit of R$9.771 billion for the first quarter of 2024. The figure is 15.8% higher than that recorded a year earlier. The result was practically in line with expectations. The LSEG consensus predicted net profit of R$9.734 billion in the period.
TIM (TIMS3) recorded normalized net profit of R$519 million in the first quarter of 2024 (1Q24). The value indicates an increase of 19% on an annual basis.
(With Estadão, Reuters and Agência Brasil)
