Investing.com – Investors’ attention is focused on interest rate decisions in Brazil and the United States. The consensus expectation for this “Super Wednesday” is to maintain the American interest rate in the range between 5.25% and 5.50% and cut the Brazilian interest rate by half a percentage point, which would go from 12.75% to 12.25% per year.
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The Federal Reserve releases its decision at 3pm (Brasília time), with a press conference by Fed Chairman Jerome Powell at 3:30pm. At a local level, the Central Bank’s Monetary Policy Committee (Copom) announces the Selic’s direction from 6pm.
For Antonio van Moorsel, chief strategist at Acqua Vero, the Copom should not surprise the market. The monetary authority must “nurture the caution present in the most recent communications, emphasizing external uncertainty, especially the trajectory of US interest rates and the geopolitical conflict in the Middle East, and fiscal skepticism”, he states.
Thomas Monteiro, analyst at Investing.comhighlights that the main expectation will be in Powell’s speech, given the prospect of maintaining the rate stable.
“Powell is expected to try to deliver another hawkish pause, that is, stating that the US central bank will keep interest rates high for longer than the market expected, as inflation has already shown signs of a slight rebound in the latest measures” .
Amid the increase in yields on 10- and 30-year American bonds, which reached 5%, Monteiro warns of the high risk in the medium and long term for the American economy.
“In this scenario, Powell will have two challenges that are practically opposite to each other: calming the bond market and, at the same time, ensuring that inflation expectations remain under control”, he adds.
At 8:24 am (Brasília time), Nasdaq 100 Futures lost 0.44%, S&P 500 Futures fell 0.42% and Dow Jones Futures was down 0.34%.
The EWZ ETF (NYSE:EWZ), which seeks to track the results of an index composed of Brazilian shares, was stable in the pre-market. The Dollar Futures Index, which measures the performance of the US currency against a basket of six currencies, rose 0.22% to US$106.73.
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WTI Futures Oil, a reference in the United States, registered an increase of 1.77%, to US$82.45, and Brent Futures Oil gained 1.71% to US$86.47.
Vale’s ADRs (NYSE:VALE) were stable, at US$13.71, and those of Petrobras (NYSE:PBR) gained 0.40%, at US$15.06.
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h2 News of the day/h2
Acquitted — The Securities and Exchange Commission (CVM) acquitted businessmen Joesley and Wesley Batista, who were accused of insider trading.
Legal Framework for Guarantees — With vetoes, President Luiz Inácio Lula da Silva (PT) sanctioned the Legal Framework for Guarantees, which regulates loans in Brazil.
Fiscal target — President Lula met with the president of the Chamber, Arthur Lira (PP-AL), and with the Minister of Finance, Fernando Haddad, demonstrating concern for agendas that increase revenue in Congress, reported CNN. “According to the newspapers, the change is already considered practically certain in the government and, now, the calibration of the size of the flexibility has become the main issue”, says XP (BVMF:XPBR31).
Firearms — The president signed a decree that practically doubles the Tax on Industrialized Products (IPI) on the trade of firearms and ammunition in the country, which could affect companies like Taurus (BVMF:TASA4).
h2 Agenda of the day/h2
Roberto Campos Neto — Meetings with Geraldo Alckmin, vice-president of the Republic and minister of Development, Industry, Commerce and Services, and with Rodrigo Alves Teixeira, deputy special secretary of the Special Secretariat for Government Analysis (SAG). He participates in the first session of the Copom Meeting.
Luiz Inácio Lula da Silva — Meeting with Public Banks and the head of the cabinet, Marco Aurélio Marcola. Signing of the Sanction to Bill No. 4172/2023, which establishes the National Pact for the Resumption of Unfinished Works.
Fernando Haddad — Meetings with the President of the Republic, Luiz Inácio Lula da Silva and with the presidents of Public Banks, with Sílvio Costa Filho, Minister of Ports and Airports, and representatives of the Brazilian Textile Retail Association (ABVTEX) and the Brazilian Franchising Association (ABF). Dispatch with secretaries Dario Durigan and Robinson Barreirinhas,
h2 Corporate News/h2
Prio (BVMF:PRIO3) — The oil producer reported net profit of US$348 million in the third quarter, an annual increase of 126%.
Cielo (BVMF:CIEL3) — The company presented consolidated net profit of R$456.7 million between July and September, an increase of 8.3% compared to the same period in 2022.
Raia Drogasil (BVMF:RADL3) — The pharmacy chain recorded net profit of R$296.5 million in 3Q23. The amount represents an increase of 31.6% compared to the same period last year.
Telefônica Brasil SA (BVMF:VIVT3) (Vivo) — The telecommunications company reported net profit of R$1.47 billion, an annual gain of 2.2%.
CCR (BVMF:CCRO3) — Companhia de Concessões Rodoviárias recorded an adjusted net profit of R$501.6 million, an increase of 44.8% compared to the same period last year.
Marcopolo (BVMF:POMO4) — Marcopolo presented consolidated net profit of R$161.7 million in the third quarter, an increase of 246.2% compared to the same period last year.
Bradesco (BVMF:BBDC4) — The financial institution renewed the buyback program of up to 106.6 million shares for a period of up to 18 months.
Auren (BVMF:AURE3) — The energy company reported a net loss of R$838.1 million in the third quarter, reversing a profit of R$230.1 million from a year earlier.
Eletrobras (BVMF:ELET3) — The Board of Directors of Eletrobras authorized the structuring of a possible secondary offering of preferred shares of the transmitter ISA CTEEP (BVMF:TRPL4).
Itaú Unibanco Holdings (BVMF:ITUB4) — The financial institution plans a corporate reorganization that will involve a total spin-off of Banco Itaú BBA.
CSN (BVMF:CSNA3) —The purchase of an additional stake in Panatlântica had an agreed amount of R$150 million.
Hidrovias do Brasil (BVMF:HBSA3) — The company may reduce capacity if the drought in the North continues to affect the region.
Carrefour (BVMF:CRFB3) — The retailer reported net profit of R$132 million in the third quarter, an annual decline of 59.1%.
