Brazil’s Financial Morning Call for October 10, 2024
Today’s economic agenda features several key events that could significantly impact Brazil’s financial markets and economic outlook.
The IBGE will release the Monthly Retail Survey for August at 9:00 AM, providing insights into consumer spending trends and overall economic activity.
At 10:00 AM, CNI will publish the Industrial Entrepreneur Confidence Index (ICEI) for October, offering a glimpse into business sentiment in the manufacturing sector.
Internationally, the United States will release its Consumer Price Index for September and weekly Jobless Claims at 9:30 AM, which could influence global market sentiment and monetary policy expectations.
In Mexico, Banxico will release the minutes of its Monetary Policy Decision at 12:00 PM, potentially impacting regional markets.
These events are crucial for investors and policymakers as they provide valuable information about economic trends, inflation pressures, and business confidence, which can influence market movements and policy decisions.
Economic Agenda, Thursday, October 10
Brazil
- 9:00 AM – IBGE: Monthly Retail Survey (Aug)
- 10:00 AM – CNI: Industrial Entrepreneur Confidence Index – ICEI (Oct)
United States
- 9:30 AM – Consumer Price Index (Sep)
- 9:30 AM – Jobless Claims (weekly)
Mexico
- 12:00 PM – Banxico: Release of Monetary Policy Decision Minutes
Brazilian Markets on Wednesday
The Brazilian stock market faced a challenging day on Wednesday, October 9, 2024. The Ibovespa index plummeted 1.18%, shedding 1,549.67 points to close at 129,962.06. This marked the lowest level since August 8, 2024, when it closed at 128,660.88 points.
In the currency market, the commercial dollar strengthened against the Brazilian real, rising 1.00% to R$5.58. This marked the dollar’s third consecutive day of gains. Interest rate futures (DIs) also accelerated, with some short- and medium-term maturities rising by nearly 2%.
U.S. Markets on Wednesday
U.S. stocks set more record highs on Wednesday. The S&P 500 rose 0.7% to 5,792.04, beating the all-time high it set last week. The Dow Jones Industrial Average added 1% to 42,512, also setting a new record. The Nasdaq composite gained 0.6% to 18,291.62.
Commodities Update
US oil inventories added further pressure to prices. WTI crude futures for November delivery closed at $73.24 per barrel, down 0.45%.
Brent crude for December delivery dropped 0.78%, settling at $76.58 per barrel. These price movements reflected ongoing market uncertainties.
Corporate News
Several Brazilian companies made notable moves on Wednesday:
- Petrobras: Lost top spot in oil sector profitability to small-cap Refinaria de Petróleos Manguinhos (RPMG3) in 2024.
- Tenda: Achieved record Q3 2024 performance with net sales reaching R$ 1.55 billion, up 68% year-over-year.
- Cosan: Suspended the initial public offering (IPO) of its subsidiary, Moove Lubricants Holdings, due to unfavorable market conditions.
- Oi: Creditors approved the sale of Oi’s broadband unit, ClientCo, to V.tal for R$ 5.683 billion ($1.024 billion).
- Gerdau: Held an Investor Day event that sparked analyst optimism, highlighting portfolio expansion and cost reduction strategies.
- Braskem: Pricing a new 10-year bond with an initial yield of about 8% per year to manage debt and address market challenges.
- MRV: Reported 24.4% sales growth and R$262 million cash generation in Q3 2024.
- Cyrela: Q3 sales surged 41% to R$3.2 billion, indicating a boom in Brazilian real estate.
- Multiplan: Signed a memorandum of understanding to sell a 25% stake in JundiaíShopping for R$ 251.40 million.
Investors are closely monitoring several factors that could impact market performance in the coming days. September’s IPCA inflation data played a significant role in the market’s downturn. While the figures aligned with market expectations, they left a bitter taste.
The inflation report has led economists to revise their expectations for the upcoming Copom meeting. Many now anticipate a 0.50 percentage point increase in the Selic rate in November.
Global factors also contributed to the market’s decline. China’s underwhelming economic stimulus measures and ongoing tensions in the Middle East impacted commodity prices.
Looking ahead, market participants are bracing for the release of U.S. consumer inflation data on Thursday. This report has the potential to significantly impact global markets, adding another layer of uncertainty to an already volatile trading environment.
Live Market IntelligenceBrazil Morning Call — Live Board
Rio Times · Live Market Intelligence
Brazil Morning Call — Live Board
+0.46%
183,827.59
+0.46%
65,110.57
+0.26%
11,055.91
-0.73%
2,782,561
-0.59%
2,558.92
-0.79%
60,220.45
+0.32%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 183,827.59 | +0.46% | +21.85% | 182,991.13 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| EUR/BRL | 5.95 | +1.01% | -5.83% | 5.89 | 5.98 | 5.94 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| BRENT | 88.88 | -0.03% | +34.42% | 88.91 | 90.07 | 88.12 | 29,713 |
| WTI | 83.11 | -0.11% | +31.57% | 83.20 | 84.35 | 82.40 | 166,848 |
| IRON ORE | 161.91 | — | +58.10% | 161.91 | 161.91 | 1 | |
| GOLD | 4,461 | +1.78% | +33.20% | 4,383 | 4,503 | 4,421 | 139,824 |
| SILVER | 65.59 | +1.26% | +73.05% | 64.77 | 66.98 | 64.81 | 46,406 |
| LITHIUM | 75.20 | +1.47% | +62.95% | 74.11 | 75.80 | 75.08 | 89,275 |
| SOY | 1,184 | +3.20% | +17.05% | 1,148 | 1,199 | 1,168 | 163,179 |
| CORN | 480.50 | +10.02% | +29.34% | 436.75 | 480.75 | 459.50 | 341,248 |
| WHEAT | 655.00 | +3.93% | +29.70% | 630.25 | 657.75 | 631.50 | 128,793 |
| COFFEE | 317.25 | -5.51% | +0.67% | 335.75 | 321.20 | 313.55 | 21,747 |
| SUGAR | 16.43 | -1.79% | -3.01% | 16.73 | 17.11 | 16.22 | 171,992 |
| ORANGE JUICE | 138.55 | -0.47% | -45.38% | 139.20 | 141.05 | 137.50 | 703 |
| COTTON | 85.03 | +2.33% | +26.78% | 83.09 | 82.90 | 81.96 | 16,546 |
| BEEF | 223.60 | -3.93% | -5.18% | 232.75 | 226.40 | 223.00 | 16,126 |
| CATTLE | 339.10 | -3.16% | -1.82% | 350.17 | 345.50 | 338.60 | 10,164 |
| COCOA | 5,719 | +3.18% | -34.96% | 5,543 | 5,779 | 5,574 | 26,773 |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| KLABIN | 17.69 | +0.80% | -2.95% | 17.55 | 17.74 | 17.48 | 2,057,400 |
| SLCE3 | 13.34 | +0.30% | -12.25% | 13.30 | 13.42 | 13.20 | 1,454,200 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
| LREN3 | 11.87 | -1.33% | -28.65% | 12.03 | 12.17 | 11.83 | 9,683,300 |
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