Brazil’s Financial Morning Call for September 12, 2024
Today’s economic agenda includes key indicators that will shape market direction and investor sentiment.
The IBGE will release the Monthly Trade Survey for July at 9:00 AM. This survey will provide insights into the retail sector’s performance.
Additionally, Conab will publish the 12th Grain Crop Survey 2023/2024 at 9:00 AM. This report will offer a glimpse into agricultural production trends.
The IBOVESPA closed at 134,676.75 points yesterday, up 0.27%. Positive sentiment driven by commodity stocks and encouraging economic data fueled this increase.
Meanwhile, the Brazilian real weakened against the dollar. The USD/BRL exchange rate closed at R$ 5.6498, marking a 1.32% depreciation.
Surprisingly, Brazil’s service sector showed remarkable growth. It expanded by 1.2% in July, defying expectations of a 0.1% decline.
This growth marks the second consecutive month of expansion. As a result, economic activity has reached unprecedented levels.
Furthermore, Finance Minister Fernando Haddad announced plans to revise Brazil’s 2024 GDP growth forecast upward.
He aims to increase it to at least 3%. However, he expressed concerns about inflation due to severe droughts and wildfires across Brazil. These natural disasters are exerting pressure on food and energy prices.
Economic Agenda for September 12, 2024
Brazil
- 9:00 AM: IBGE: Monthly Trade Survey (Jul)
- 9:00 AM: Conab: 12th Grain Crop Survey 2023/2024
Eurozone
- 9:15 AM: Central Bank will announce monetary policy decision
United States
- 9:30 AM: Producer Price Index (Aug)
- 9:30 AM: Jobless Claims (weekly)
- 3:00 PM: Treasury: Monthly Fiscal Result (Aug)
Commodity Market Dynamics
Vale, Brazil’s mining giant, has raised its 2024 iron ore production forecast. The new target range is 323-330 million metric tons, up from 310-320 million. This increase signals Vale’s confidence in its operations and market outlook.
The global oil market witnessed a significant turnaround on Wednesday, with prices climbing over 2% after a sharp decline the previous day.
This recovery pushed Brent crude, the international benchmark, back above the $70 per barrel mark. Brent crude futures for November delivery rose 2.05% to $70.61 per barrel on the Intercontinental Exchange in London.
Meanwhile, West Texas Intermediate (WTI) crude for October delivery jumped 2.37% to $67.31 per barrel on the New York Mercantile Exchange. The price rebound was primarily fueled by escalating tensions in the Middle East.
Corporate News
Vale increased its 2024 iron ore production forecast, boosting its stock by more than 2%. Meanwhile, Auren Energia and AES Brasil announced a significant merger.
This union creates the third-largest power generator in Brazil with 8.8 gigawatts of installed capacity.
Additionally, Brava Energia, formerly known as 3R Petroleum, saw strong performance following positive production data.
Sergio Zimerman, the founder and CEO of Petz, a leading Brazilian pet retail chain, has significantly increased his stake in the company to over 30%.
This move comes amid a transformative period for the Brazilian pet care industry and Petz itself. Petz is one of Brazil’s largest pet product retailers, operating in a rapidly growing market.
Global Context
U.S. markets experienced volatility but ultimately closed higher, with tech stocks leading a late rally.
The S&P 500 gained 1.1%, while the Dow Jones Industrial Average rose 0.3%. Moreover, the Nasdaq composite jumped 2.2%.
Investors are closely watching the upcoming central bank meeting scheduled for September 17-18.
Policymakers face the challenge of balancing growth stimulation with inflation control in this complex economic environment.
This 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 12, 2024
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-0.46%
176,723.62
-0.46%
67,298.78
+0.88%
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 | 177,896 | 176,293 | — |
| USD/BRL | 5.09 | +0.71% | -8.51% | 5.05 | 5.09 | 5.04 | — |
| EUR/BRL | 5.79 | -0.08% | -11.20% | 5.80 | 5.79 | 5.76 | — |
| SELIC | 14.25% | — | — | — | — | — | |
| BRENT | 100.55 | +6.89% | +46.77% | 94.07 | 102.01 | 94.88 | 47,655 |
| WTI | 92.36 | +6.37% | +41.55% | 86.83 | 93.50 | 87.32 | 379,306 |
| IRON ORE | 161.91 | — | +64.76% | 161.91 | 161.91 | 1 | |
| GOLD | 4,052 | -2.28% | +19.39% | 4,147 | 4,144 | 4,043 | 154,221 |
| SILVER | 57.90 | -3.54% | +47.40% | 60.02 | 60.36 | 57.32 | 34,110 |
| LITHIUM | 69.02 | +0.03% | +55.17% | 69.00 | 69.68 | 68.65 | 135,477 |
| SOY | 1,241 | +0.65% | +23.39% | 1,233 | 1,250 | 1,236 | 141,251 |
| CORN | 486.75 | +5.36% | +22.15% | 462.00 | 490.25 | 483.00 | 212,025 |
| WHEAT | 694.50 | -1.59% | +28.49% | 705.75 | 710.25 | 693.00 | 73,588 |
| COFFEE | 310.75 | -1.86% | +3.12% | 316.65 | 321.30 | 308.25 | 12,910 |
| SUGAR | 14.68 | -0.41% | -9.61% | 14.74 | 14.90 | 14.65 | 42,689 |
| ORANGE JUICE | 145.50 | -3.19% | -56.77% | 150.30 | 148.80 | 144.00 | 371 |
| COTTON | 81.53 | +2.08% | +22.38% | 79.87 | 81.75 | 79.75 | 15,710 |
| BEEF | 221.48 | -0.77% | -2.44% | 223.20 | 221.90 | 217.38 | 19,933 |
| CATTLE | 340.13 | -0.31% | +2.59% | 341.17 | 340.50 | 333.00 | 9,414 |
| COCOA | 5,367 | +0.73% | -36.41% | 5,328 | 5,411 | 5,165 | 13,283 |
| PETR4 | 42.95 | +0.87% | +34.26% | 42.58 | 43.49 | 42.86 | 25,168,900 |
| VALE3 | 75.68 | +0.77% | +31.80% | 75.10 | 77.07 | 74.51 | 15,786,100 |
| SUZB3 | 42.43 | -0.54% | -18.01% | 42.66 | 42.82 | 41.78 | 2,360,000 |
| KLABIN | 17.66 | -1.51% | -4.57% | 17.93 | 17.92 | 17.41 | 4,884,700 |
| 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 | 18.99 | 18.68 | 19,153,200 |
| BBAS3 | 20.93 | -0.76% | +3.56% | 21.09 | 21.08 | 20.78 | 18,398,200 |
| 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 | 46.86 | 44.68 | 13,576,700 |
| 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 | 37.19 | 36.03 | 13,206,600 |
| 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 | 13.48 | 13.23 | 8,057,600 |
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