Brazil’s Financial Morning Call for October 9, 2024
Today’s economic agenda features several key events that could significantly impact Brazil’s financial markets and economic outlook.
The FIPE IPC weekly inflation index will be released at 5:00 AM, providing insights into short-term inflationary pressures in São Paulo.
At 8:00 AM, FGV will publish the IGP-M first preview for October, offering an early look at wholesale price trends.
IBGE will release the crucial IPCA inflation data for September at 9:00 AM, which will be closely watched for its implications on monetary policy.
The Central Bank of Brazil (BCB) will publish two reports at 2:30 PM: the Brazil Commodities Index for September and the weekly Foreign Exchange Flow data.
Internationally, Mexico will release its Consumer Price Index for September at 9:00 AM, potentially influencing regional market sentiment.
In the United States, the FOMC Minutes will be released at 3:00 PM, which could impact global markets and monetary policy expectations.
Economic Agenda, Wednesday, October 9
Brazil
- 5:00 AM – FIPE: IPC (weekly)
- 8:00 AM – FGV: IGP-M (1st preview) (Oct)
- 9:00 AM – IBGE: IPCA (Sep)
- 2:30 PM – BCB: Brazil Commodities Index (Sep)
- 2:30 PM – BCB: Foreign Exchange Flow (weekly)
Mexico
- 9:00 AM Consumer Price Index (Sep)
United States
- 3:00 PM – FOMC Minutes Release
Brazilian Markets on Tuesday
The Brazilian stock market experienced a downturn on Tuesday, as the Ibovespa index fell 0.38% to close at 131,514.03 points.
This decline was primarily driven by disappointing news from China regarding its stimulus package, which fell short of market expectations.
The total trading volume for the day was not specified in the provided information.
In the currency market, the commercial dollar strengthened, reaching R$5.53 against the Brazilian real.
U.S. Markets on Tuesday
U.S. stocks rebounded on Tuesday. The S&P 500 rose 1%, the Dow Jones Industrial Average added 0.3%, and the Nasdaq composite climbed 1.4%.
This recovery was largely driven by falling oil prices and strong performance from Big Tech stocks.
Wall Street held firm despite stock markets around the world sinking following scary swings in China.
Commodities Update
Oil prices experienced a significant drop, easing some of the pressure that had built up in the market.
This decline was attributed to easing tensions in the Middle East and the resumption of production in Libya.
Gold prices also dipped as the surging U.S. job market dampened hopes for interest rate cuts.
Corporate News
Several Brazilian companies made notable moves on Tuesday:
- Vale’s stock fell by 3.11% due to falling iron ore prices and concerns about China’s economic indicators.
- Petrobras experienced a 2.06% decline, also impacted by falling commodity prices.
- Azul, a Brazilian airline, closed 8.35% higher after reaching a 3 billion reais agreement with creditors.
- Cogna, an education company, surged 11.90% following a positive review from Bradesco BBI.
- Mining companies felt the impact of falling iron ore prices, with CSN dropping 4.62% and CSN Mineração falling 3.34%.
- Oil companies suffered from commodity price declines, with Prio decreasing by 2.70% and PetroRecôncavo falling by 2.05%.
Underlying Sentiment
Investors are closely monitoring several factors that could impact market performance in the coming days.
The confirmation hearing of Gabriel Galípolo for the Central Bank presidency took place on Tuesday. Galípolo assured senators that President Lula had guaranteed his decision-making freedom in leading the institution.
The release of September’s IPCA inflation data, scheduled for today, will provide crucial insights into Brazil’s economic health and potential monetary policy directions.
As the week progresses, market participants must remain vigilant, navigating a complex environment influenced by both domestic and international factors, including ongoing global economic uncertainties and geopolitical tensions.
Live Market IntelligenceBrazil Morning Call — Live Board
Rio Times · Live Market Intelligence
Brazil Morning Call — Live Board
-0.46%
176,723.62
-0.46%
66,247.47
-1.56%
10,916.70
-0.84%
3,319,522
-1.78%
2,283.28
-0.60%
57,575.02
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| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 176,723.62 | -0.46% | +30.55% | 177,547.57 | — | — | — |
| USD/BRL | 5.08 | -0.08% | -7.91% | 5.08 | 5.09 | 5.08 | — |
| EUR/BRL | 5.78 | +0.07% | -10.91% | 5.78 | 5.79 | 5.78 | — |
| SELIC | 14.25% | — | — | — | — | — | |
| BRENT | 100.29 | -0.40% | +44.97% | 100.69 | 101.16 | 99.62 | 2,194 |
| WTI | 91.69 | -0.54% | +38.86% | 92.19 | 92.83 | 91.16 | 23,467 |
| IRON ORE | 161.91 | — | +64.24% | 161.91 | 161.91 | 1 | |
| GOLD | 4,031 | -0.38% | +19.59% | 4,047 | 4,054 | 4,025 | 17,041 |
| SILVER | 57.64 | -0.28% | +47.70% | 57.80 | 58.17 | 57.36 | 3,784 |
| LITHIUM | 69.02 | +0.03% | +55.17% | 69.00 | 69.68 | 68.65 | 135,477 |
| SOY | 1,248 | +0.85% | +24.27% | 1,238 | 1,248 | 1,240 | 6,869 |
| CORN | 489.00 | +5.39% | +21.72% | 464.00 | 489.25 | 486.00 | 14,254 |
| WHEAT | 701.75 | +0.79% | +29.59% | 696.25 | 702.00 | 694.75 | 3,489 |
| COFFEE | 310.75 | -1.86% | +1.94% | 316.65 | 321.30 | 308.25 | — |
| SUGAR | 14.68 | -0.41% | -11.41% | 14.74 | 14.90 | 14.65 | — |
| ORANGE JUICE | 145.50 | -3.19% | -57.07% | 150.30 | 148.80 | 144.00 | — |
| COTTON | 81.53 | +2.08% | +21.07% | 79.87 | 81.75 | 79.75 | 15,710 |
| BEEF | 221.48 | -0.77% | -1.92% | 223.20 | 221.90 | 217.38 | 19,933 |
| CATTLE | 340.13 | -0.31% | +3.41% | 341.17 | 340.50 | 333.00 | 9,414 |
| COCOA | 5,367 | +0.73% | -33.94% | 5,328 | 5,411 | 5,165 | — |
| PETR4 | 42.95 | +0.87% | +34.26% | 42.58 | 42.95 | — | — |
| VALE3 | 75.68 | +0.77% | +31.80% | 75.10 | 75.68 | — | — |
| SUZB3 | 42.43 | -0.54% | -18.01% | 42.66 | 42.43 | — | — |
| KLABIN | 17.66 | -1.51% | -4.57% | 17.93 | 17.66 | — | — |
| SLCE3 | 13.77 | -1.36% | -14.13% | 13.96 | 14.06 | 13.69 | 2,340,100 |
| ABEV3 | 15.92 | -1.30% | +17.14% | 16.13 | 16.11 | 15.84 | 18,905,100 |
| ITUB4 | 42.56 | -0.79% | +23.87% | 42.90 | 42.87 | 42.27 | 22,565,100 |
| BBDC4 | 18.72 | -1.32% | +17.88% | 18.97 | 18.72 | — | — |
| BBAS3 | 20.93 | -0.76% | +3.56% | 21.09 | 20.93 | — | — |
| B3SA3 | 15.65 | -1.57% | +16.88% | 15.90 | 15.82 | 15.48 | 41,084,700 |
| WEGE3 | 45.67 | -2.29% | +20.15% | 46.74 | 45.67 | — | — |
| PRIO3 | 60.54 | +1.29% | +42.55% | 59.77 | 61.35 | 60.54 | 6,347,300 |
| RENT3 | 37.14 | +0.00% | +2.51% | 37.14 | 37.14 | — | — |
| AZZA3 | 17.05 | -4.27% | -54.07% | 17.81 | 17.71 | 17.03 | 2,368,800 |
| CSNA3 | 5.30 | -1.49% | -39.57% | 5.38 | 5.61 | 5.30 | 12,053,100 |
| GGBR4 | 24.06 | +0.00% | +39.72% | 24.06 | 24.41 | 23.83 | 7,631,200 |
| ENEV3 | 25.70 | -1.04% | +83.70% | 25.97 | 25.80 | 25.45 | 3,301,300 |
| LREN3 | 13.37 | -1.26% | -24.16% | 13.54 | 13.37 | — | — |
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