Brazil’s Financial Morning Call for September 13, 2024
Today’s economic agenda brings several key releases that will provide crucial insights into Brazil’s economic health and potential market movements.
The IBC-Br Economic Activity Index and the Monthly Industrial Survey for July are both set to be released at 9:00 AM.
They will offer valuable information on Brazil’s economic performance and the health of its industrial sector. These indicators could significantly influence market sentiment and trading decisions.
Internationally, the Eurozone’s Industrial Production data may impact global market trends, while the U.S. University of Michigan Consumer Confidence Index could affect broader economic outlooks.
Later, China’s economic indicators, including Industrial Production and Retail Sales, will be crucial for assessing demand for Brazilian exports and commodities.
Now, let’s dive into the details of today’s economic calendar and market updates:
Economic Agenda, Friday, September 13
Brazil
- 9:00 AM: BCB: IBC-Br Economic Activity Index (Jul)
- 9:00 AM: IBGE: Monthly Industrial Survey – Regional (Jul)
Eurozone
- 6:00 AM: Industrial Production (Jul)
United States
- 11:00 AM: University of Michigan Consumer Confidence Index (Sep) – preliminary
China
- 11:00 PM: Industrial Production (Aug)
- 11:00 PM: Retail Sales (Aug)
- 11:00 PM: Fixed Asset Investment (Aug)
- 11:00 PM: Unemployment Rate (Aug)
Brazil’s Markets Yesterday
The Ibovespa, Brazil’s main stock index, fell 0.48% to 134,029.43 points on Thursday, September 12, 2024. This decline contrasted with gains in U.S. markets, highlighting divergent market forces.
Petrobras (PETR4; PETR3) shares declined, limiting Ibovespa’s gains. Goldman Sachs cut its price target for Petrobras, citing lower oil prices and debt concerns.
The U.S. dollar weakened 0.56% against the Brazilian real, closing at R$5.6182. Brazilian retail sales grew 0.6% in July, exceeding expectations.
The Chamber of Deputies approved a bill transitioning away from payroll tax exemptions. Finance Minister Fernando Haddad emphasized the difficulty in reaching consensus on this proposal.
Brava Energia (BRAV3), formerly 3R Petroleum, led Ibovespa’s losses. Cogna (COGN3) also fell, although Bank of America upgraded its recommendation from sell to neutral.
U.S. Markets Yesterday
U.S. stocks rose closer to their all-time highs following economic reports that came in close to expectations.
The S&P 500 climbed 0.7% Thursday, pulling back within 1.3% of its record set in July. The Dow Jones Industrial Average gained 0.6%, and the Nasdaq composite jumped 1%.
More gains for Nvidia and other Big Tech stocks drove the market higher, offsetting a slump for Moderna after the vaccine maker cut its plans for research-and-development investment.
Treasury yields were relatively steady in the bond market following reports on layoffs and inflation that included few surprises.
- The S&P 500 rose 41.63 points, or 0.7%, to 5,595.76.
- The Dow Jones Industrial Average rose 235.06 points, or 0.6%, to 41,096.77.
- The Nasdaq composite rose 174.15 points, or 1%, to 17,569.68.
- The Russell 2000 index of smaller companies rose 25.58 points, or 1.2%, to 2,129.43.
Economic Indicators and Market News
- Oil prices surged as Hurricane Francine approached the U.S. coast, potentially impacting energy markets.
- Brazil forecasts 3% economic growth amid a job surge, indicating positive economic momentum.
- Industrial confidence in Brazil rose for the second consecutive month, suggesting a potential upswing in the manufacturing sector.
- The Argentina ETF outperformed the global market while Brazil lagged behind, highlighting regional disparities in market performance.
- WEG strengthened its position in Turkey’s growing electric motor market, potentially boosting its international presence.
- Goldman Sachs forecasts a $6 billion payout for Petrobras by 2025, which could provide some positive sentiment for investors.
- Petrobras launched the largest natural gas processing unit in Brazil, which could have positive implications for the energy sector.
Market Outlook
As we look ahead to today’s trading session, investors will be closely watching the release of the IBC-Br Economic Activity Index and the Monthly Industrial Survey for July.
These indicators will provide crucial insights into Brazil’s economic performance and could influence market sentiment.
The ongoing global economic uncertainties, including oil price fluctuations and international market movements, are likely to continue impacting Brazilian markets.
Investors should also keep an eye on developments in the U.S. and China, as these could have ripple effects on emerging markets like Brazil.
Live Market IntelligenceBrazil Morning Call — Live Board
Rio Times · Live Market Intelligence
Brazil Morning Call — Live Board
-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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