Brazil’s Financial Morning Call for September 11, 2024
Today’s economic agenda is crucial for market direction, with key indicators and corporate news shaping investor sentiment.
The IBGE will release the Monthly Services Survey for July at 9:00 AM. This will provide insights into the service sector’s performance.
The CNI will publish the ICEI for September at 10:00 AM. This offers a glimpse into business sentiment for the month.
The Central Bank will report the weekly Foreign Exchange Flow at 2:30 PM. These figures will impact economic expectations and asset prices.
Market Overview
The IBOVESPA closed at 134,319.58 points yesterday, down 0.31%. This reflects concerns over oil prices and U.S. inflation data.
The Brazilian real weakened against the dollar. The USD/BRL exchange rate closed at 4.9720, a 0.15% depreciation.
Brazil’s economy showed signs of deflation for the first time since June 2023. The IPCA fell by 0.02% in August, below market expectations.
The 12-month inflation rate slowed from 4.50% in July to 4.24% in August. Inflation remains above the central bank’s 3% target.
Analysts predict an increase in the benchmark interest rate. This is expected at the upcoming Monetary Policy Committee meeting.
Economic Agenda for September 11, 2024
Brazil
- 9:00 AM: IBGE: Monthly Services Survey (Jul)
- 10:00 AM: CNI: Industrial Entrepreneur Confidence Index – ICEI (Sep)
- 2:30 PM: BCB – Foreign Exchange Flow (weekly)
Mexico
- 9:00 AM: Industrial Production (Jul)
United States
- 9:30 AM: Consumer Price Index (Aug)
Oil Market Dynamics
Oil prices took a nosedive on Tuesday, with Brent crude falling below $70 per barrel for the first time since December 2021.
Brent crude futures plunged 3.24% to $69.51 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 3.64% to $66.21.
OPEC revised its 2024 global oil demand growth forecast downward to 2.03 million barrels per day (bpd), reflecting growing concerns about global economic growth, particularly in China.
Corporate News
- Embraer received a credit rating upgrade, signaling improved financial strength.
- Auren and AES Brasil announced a merger, forming a renewable energy giant.
- Petz’s CEO increased his stake in the company amid pet industry shake-up.
- Tokstok’s controversial merger faces opposition from the founding family.
- C6 Bank, backed by JPMorgan Chase, aims for a R$2 billion ($400 million) profit in 2024, its first annual gain since 2019.
- Azul Airlines forecasts a 2024 revenue of R$20 billion, showing resilience in the aviation sector.
Global Context
U.S. markets closed mixed on Tuesday, with the S&P 500 rising 0.4%, the Dow Jones Industrial Average falling 0.2%, and the Nasdaq composite gaining 0.8%.
Investors are eagerly awaiting the U.S. Consumer Price Index (CPI) data release today, which is expected to show a monthly increase of 0.2% and a yearly rise of 2.6%.
Commodities Outlook
Copper imports to China have plummeted, reflecting deepening economic woes in the world’s second-largest economy.
This development could have significant implications for global commodity markets and emerging economies like Brazil.
That concludes our comprehensive Financial Morning Call for Brazil. Stay tuned for updates as these economic indicators are released throughout the day.
Brazil’s Financial Morning Call for September 11, 2024
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+0.46%
183,827.59
+0.46%
65,071.30
+0.20%
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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