Brazil’s Financial Morning Call for September 27, 2024
Today’s economic agenda features several key events that could significantly impact Brazil’s financial markets and economic outlook.
The release of the FGV’s IGP-M inflation index for September will provide crucial insights into Brazil’s inflationary trends.
This data is particularly important following the Central Bank’s recent GDP forecast adjustment to 3.2% for 2024, signaling a more optimistic economic outlook.
The FGV’s Commerce and Services Surveys for September will offer valuable information on sentiment in these crucial sectors of the Brazilian economy.
The Central Bank’s press release on monetary policy and credit operations will be closely watched for any indications of future policy direction, especially in light of the recent upward revision of economic growth projections.
The IBGE’s Continuous PNAD for August will provide a comprehensive snapshot of Brazil’s labor market, a critical indicator of economic health.
Additionally, the Treasury’s Primary Result of the Central Government will shed light on Brazil’s fiscal position, particularly important given recent economic developments.
Economic Agenda, Friday, September 27
Brazil
- 08:00: FGV: IGP-M (Sep)
- 08:00: FGV: Commerce Survey (Sep)
- 08:00: FGV: Services Survey (Sep)
- 08:30: BCB: Press release – Monetary policy and credit operations
- 09:00: IBGE: Continuous PNAD (Aug)
- Treasury: Primary Result of the Central Government
Germany
- 04:55: Unemployment rate (Sep)
United States
- 09:30: Personal spending (Aug)
- 09:30: Personal income (Aug)
- 09:30: BEA: PCE deflator (Aug)
- 11:00: University of Michigan Consumer Confidence Index (Sep) – final
Brazilian Markets on Thursday
The Brazilian stock market experienced a significant upswing on Thursday, September 26, 2024. The Ibovespa, Brazil’s main stock index, climbed 1.08% to reach 133,009.79 points.
This surge brought the index closer to its all-time high, driven by strong performances in key sectors. Vale, the Brazilian mining giant, played a crucial role in the market’s ascent.
The company’s stock price soared by over 6% during the trading session. This remarkable gain propelled the Ibovespa back above the 133,000-point threshold.
The mining and steel sectors benefited from positive developments in China. The Chinese government announced plans to introduce new measures to boost its economy. This news led to a 1.75% increase in iron ore futures on the Dalian Commodity Exchange.
In the currency market, the US dollar weakened against the Brazilian real. The exchange rate closed at R$5.4447, representing a 0.57% decrease for the dollar.
U.S. Markets on Thursday
U.S. stocks rose to another all-time high, but a slide in oil prices kept the gains in check by weighing down energy companies.
The S&P 500 rose 0.4% Thursday, setting its third record high this week. The Dow Jones Industrial Average added 0.6%, and the Nasdaq rose 0.6%.
Micron Technology led the way after AI-related demand helped it deliver a stronger-than-expected profit report.
Other tech companies also rose. Exxon Mobil, ConocoPhillips and other energy companies fell along with crude prices.
Oil Prices
Oil prices plummeted as Saudi Arabia and OPEC eye production increases. This development could have significant implications for Brazil’s oil sector and overall economic outlook.
Corporate News
In the corporate sphere, several Brazilian companies made significant moves:
Petrobras and YPF have forged a new South American energy alliance, signaling potential growth in the energy sector. Petrobras is also aiming to boost natural gas production with the reopening of the Roncador well.
Prio, a Brazilian oil company, has acquired a 40% stake in the Peregrino oil field for $1.9 billion, indicating significant expansion in the oil industry.
Microsoft has announced a $2.7 billion investment in Brazil’s AI and cloud future, demonstrating confidence in the country’s tech sector.
Brazil’s electric giants are gearing up for a high-stakes transmission auction, which could reshape the country’s energy infrastructure.
Underlying Sentiment
Investors are closely monitoring Brazil’s economic indicators following the Central Bank’s recent adjustment of its 2024 GDP forecast to 3.2%. This positive outlook could influence market sentiment and future investment decisions.
However, a wave of high-profile judicial reorganization hitting Brazilian agribusiness has raised concerns about the sector’s stability. This development could potentially impact investor confidence in agricultural stocks.
The ongoing developments in the oil sector, including Petrobras’s strategic moves and Prio’s significant acquisition, are likely to keep energy stocks in focus.
As these events unfold, market participants will be keenly watching how they influence Brazil’s economic trajectory and financial markets in the coming days and weeks.
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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