Brazil’s Financial Morning Call for September 19, 2024
Brazilian financial markets are gearing up for a volatile day following the Brazilian Central Bank’s decision to raise the Selic rate to 10.75%.
Meanwhile, the U.S. Federal Reserve cut rates by 0.50 percentage points. These contrasting moves will likely impact Brazil’s markets and economic outlook.
Today’s economic agenda holds key events for investors to watch closely. The FGV IGP-M preview will shed light on inflation trends.
This could influence future monetary policy decisions. Later, the CNI Construction Industry Survey will reveal the sector’s health. This serves as a crucial indicator of economic activity and investment.
Globally, the Bank of England’s policy decision may affect currency markets, including the Brazilian real.
In the U.S., the Philadelphia Fed index and unemployment claims will provide economic insights.
These indicators could sway investor sentiment towards emerging markets like Brazil.
Yesterday’s policy decisions have created a complex landscape for investors. Brazil’s tightening contrasts with the U.S.’s easing.
This divergence may lead to interesting currency movements and capital flows. Consequently, today’s trading session holds particular significance for market participants.
Economic Agenda, Thursday, September 19
Brazil
- 8:00 AM: FGV: IGP-M (2nd preview) (Sep)
- 10:00 AM: CNI: Construction Industry Survey
United Kingdom
- 8:00 AM: Central Bank will announce monetary policy decision
United States
- 9:30 AM: Philadelphia Fed activity index (Sep)
- 9:30 AM: Unemployment aid claims (weekly)
Mexico
- INEGI: IOAE (Jul)
Brazilian Markets Yesterday
The Brazilian stock market had a tumultuous day as ‘Super Wednesday’ approached. The Ibovespa closed down 0.90% at 133,747.69 points. This mirrored the global reaction to the Fed’s rate cut.
Despite the decline, the US dollar weakened against the Brazilian real. It ended at R$ 5.4617, down 0.48%. Corporate news significantly swayed investor sentiment in the domestic market.
Wall Street wavered near records after the Fed’s bigger-than-usual rate cut. The S&P 500 slipped 0.3% after fluctuating throughout the day. The Dow Jones Industrial Average fell 0.2%. The Nasdaq composite also gave back 0.3%.
Corporate News
- Petrobras has seen a 170% surge in investors, signaling democratization of the Brazilian stock market.
- Brazil’s oil exports have surged, masking trade balance shifts.
- Raizen Power is refocusing by selling small renewable plants to boost customer services.
- WEG has announced a R$670 million expansion plan for Brazil and Mexico.
- JBS USA has forged a renewable energy partnership with GreenGasUSA.
Agrogalaxy, an agricultural company, filed for bankruptcy protection late in the afternoon. This followed the resignation of its president and five board members. The unexpected news shocked the market, contributing to the overall downward trend.
In corporate news, Zamp plans to expand Starbucks to 1,000 stores in Brazil. This signals confidence in the country’s consumer market. Moreover, foreign investment has boosted B3’s August operational data.
Oil prices fluctuate due to the U.S. rate cut and Middle East tensions. This could affect Brazil’s oil exports and Petrobras stock.
Lastly, Brazil has become a priority market for Wise’s global expansion. This may bring new fintech opportunities to the country.
As events unfold, investors should watch how divergent policies shape investment flows and growth prospects. The coming months will reveal the full impact of these contrasting monetary approaches.
Brazil’s Financial Morning Call for September 19, 2024
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Brazil Morning Call — Live Board
-1.06%
204,324.26
-1.06%
67,180.21
+0.58%
10,971.88
+0.05%
2,859,051
+0.82%
2,580.50
-0.07%
59,543.73
+1.12%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 204,324.26 | -1.06% | +21.85% | 206,505.98 | 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 |
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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