Brazil’s Financial Morning Call for September 18, 2024
Today marks a pivotal moment for global financial markets as we enter “Super Wednesday,” a day of crucial monetary policy decisions.
These will shape economic trajectories worldwide. The spotlight shines on the Brazilian Central Bank’s Monetary Policy Committee (Copom) and the U.S. Federal Reserve. Both will announce their interest rate decisions later today.
These announcements carry significant weight amid a complex global economic landscape. The Brazilian market has experienced heightened anticipation recently.
The Ibovespa has shown slight fluctuations in recent days. Meanwhile, the U.S. dollar has slid for five consecutive days. This reflects the market’s keen interest in potential rate changes.
Today’s decisions will likely impact various sectors, from retail to industry. They could significantly influence investor sentiment and market dynamics in both countries.
As we await these crucial announcements, let’s explore today’s economic calendar and market updates in detail.
Economic Agenda, Wednesday, September 18
Brazil
- 2:30 PM: BCB: Exchange Flow (weekly)
- 6:30 PM: BCB: Announcement of the basic interest rate
Eurozone
- 6:00 AM: Consumer Price Index (Aug) – final
Mexico
- 2:30 PM: International reserves (weekly)
United States
- 3:00 PM: Central Bank will announce monetary policy decision
Argentina
- 4:00 PM: GDP (2nd quarter)
Brazil’s Markets Yesterday
The Brazilian stock market experienced a slight downturn on Tuesday, September 17, 2024.
The Ibovespa index closed at 134,960.19 points. This marked a 0.11% decrease from the previous day’s trading session.
Brazil’s Finance Minister, Fernando Haddad, addressed the nation’s economic situation. He emphasized the government’s efforts to adjust public accounts.
Haddad stressed the importance of respecting the fiscal framework. He expressed confidence in Brazil’s potential for above-average global growth.
The financial markets reacted to new economic data released on Tuesday. The General Price Index-10 (IGP-10) showed a deceleration in September.
It rose by only 0.18% compared to 0.72% in August. This figure came in below market expectations.
The U.S. dollar continued its downward trajectory for the fifth consecutive day against the Brazilian real.
At the close of trading on Tuesday, September 17, the U.S. dollar settled at R$ 5.4882, marking a 0.41% decrease.
This performance contrasted with the global trend, as the DXY index, which measures the dollar against six major currencies, rose by 0.22%.
U.S. Markets Yesterday
U.S. stocks showed mixed results on Tuesday. The S&P 500 edged slightly higher. The Dow Jones Industrial Average slipped less than 0.1%.
The Nasdaq composite rose 0.2%. Big Tech companies, including Microsoft and Intel, drove these gains.
Mixed trading continued as Wall Street anticipated bigger-than-usual economic relief. Investors expect this relief through a Fed interest rate cut on Wednesday. Treasury yields edged higher in the bond market.
Economic Indicators and Market News
- Oil prices have surged amid Middle East tensions and U.S. interest rate cut expectations.
- President Lula’s pick for Central Bank governor has taken an unexpected hard line.
- Lula has unveiled a $100 million boost for Brazil’s small businesses.
- JBS has whetted investor appetite with bold growth projections.
- Japan’s Koito Americas expansion plans include 60% growth in Mexico and 70% in Brazil by 2026.
- Brazil has shifted its industrial policy through BNDES innovation financing.
- A Brazilian cement giant is negotiating a R$22 billion debt overhaul.
- Brazil, Mexico, and Spain are among the top victims of crypto fraud surge in 2023.
- Chinese coffee giant Luckin plans to invest $2.5 billion in Brazilian coffee.
- Jalles is exploring a green ammonia partnership with a Chinese firm and Goiás government.
Market Outlook
Investors eagerly await the “Super Wednesday” events. Brazil’s Central Bank Monetary Policy Committee (Copom) will announce its interest rate decision.
Market analysts anticipate a 25 basis point increase in the Selic rate. This could potentially raise it to 10.75% per annum.
The U.S. Federal Reserve will also reveal its monetary policy decision today. The Fed will likely hold rates steady at the target range of 5.25%-5.50%.
However, uncertainty surrounds future rate cuts. Some traders predict rate cuts later in the year. They expect the first cut by 25 bps, though the exact timing remains uncertain.
These crucial monetary policy decisions will shape market trends. They will significantly influence investor sentiment in both Brazil and the United States.
The outcomes will likely have far-reaching implications for the global economic landscape. They will affect everything from stock markets to currency exchange rates.
Live Market IntelligenceBrazil Morning Call — Live Board
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Brazil Morning Call — Live Board
+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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