Brazil: IPCA, disagreement between Petrobras and PetroRio and what else moves the market

The main indexes advance on Friday morning, September 9, in another day of risk appetite in the international market on expectations that inflation control in the United States does not cover a “very high social cost”, as signaled by the president of the Federal Reserve (Fed), Jerome Powell, in a speech the day before.

However, the possibility of a softer interest rate hike at the meeting on the 21st is seen only as remote, with investors pricing the probability of another 0.75 percentage point hike above 80%.

Wall Street stock markets, which have fallen for three consecutive weeks against the backdrop of the outlook for the Fed’s effects on the economy, are on track to break the negative sequence on Friday.

In Brazil, the chance of a new increase in the Selic rate gained strength again this week after statements from the president of the Central Bank, Roberto Campos Neto.

The August IPCA, which will be released today at 9 AM, may strengthen or weaken the bets of another hike in the meeting in two weeks.

The market consensus for this Friday’s data is for monthly deflation of 0.4%, with the annual IPCA dropping from 10.07% to 8.72%.

If confirmed, inflation will be the lowest since June last year, when the IPCA was still 8.35%. According to the Focus bulletin, the market’s perspective is that the IPCA will end the year at 6.61%.

INDICATORS PERFORMANCE AT 7:30 AM (Brasília):

• Dow Jones future (New York): + 0.72%
• S&P 500 future (New York): + 0.83%
• Nasdaq future (New York): + 0.73%
• DAX (Frankfurt): + 1.42%
• CAC 40 (Paris): + 1.74%
• FTSE 100 (United Kingdom): + 1.66%
• Stoxx 600 (Europe): + 1.37%
• Hang Seng (Hong Kong): + 2.69%
• Shangai Composite (Shanghai): + 0.82%

END OF TRADING BY ALBACORA

Petrobras (PETR4) and PetroRio (PRIO3) have not reached an agreement in negotiations for the Albacora Field, located in the deep waters of the Campos Basin.

The value requested by Petrobras for the asset, according to PetroRio, “would incorporate neither the return nor the risk profile appropriate for the project.”

The decision, also according to the company, does not affect the transition of Albacora Leste, which the ANP is already evaluating.

The Albacora Field will be revitalized by Petrobras by contracting a new floating platform that produces, stores, and transfers oil to replace the two production units currently operating in the asset.

OURO FINO: BNDES AND OPPORTUNITY

Ouro Fino (OFSA3), of animal medicines, announced the sale of BNDESPAR’s stake in the business to Mitsui. At the same time, Mitsui also bought Opportunity’s entire stake in the business, becoming the owner of 29% of the company.

With information from Exame