Brazil’s Financial Morning Call for September 30, 2024
Today’s economic agenda features several key events that could significantly impact Brazil’s financial markets and economic outlook.
The release of the Central Bank’s Focus Report will provide crucial insights into market expectations for key economic indicators. This weekly report is closely watched by investors and policymakers alike.
The Central Bank’s Fiscal Policy Press Release for August will shed light on public accounts and the government’s fiscal direction.
This information is particularly important given recent economic developments and could influence market sentiment.
FGV’s Economic Uncertainty Indicator for September will offer valuable information on the overall economic climate in Brazil. This indicator can impact investment decisions and market volatility.
These events are significant as they provide a comprehensive view of Brazil’s economic health, fiscal position, and market expectations, which are crucial for investors and policymakers in making informed decisions.
Economic Agenda, Monday, September 30
Brazil
- 8:25 AM: BCB: Focus Report (weekly)
- 8:30 AM: BCB: Press Release – Fiscal Policy (Aug)
- 10:15 AM: FGV: Economic Uncertainty Indicator (Sep)
United Kingdom
- 3:00 AM: GDP (Q2) – final
Germany
- 3:00 AM: Retail sales (Aug)
- 9:00 AM: Consumer Price Index (Sep) – preliminary
United States
- 2:00 PM: Fed: Speech by J. Powell
Mexico
- Government Budget (Aug)
Brazilian Markets on Friday
The Brazilian stock market concluded a data-rich week with mixed results. The Ibovespa, Brazil’s main stock index, closed Friday’s session at 132,730.36 points, marking a 0.21% decline.
Despite this dip, the index managed to secure a 1.28% gain for the week. Currency markets saw the US dollar settle at R$ 5.4361, down 0.16% for the day and 1.54% for the week against the Brazilian real.
Brazil’s labor market showed signs of improvement. The unemployment rate reached 6.6% for the three months ending in August, surpassing market expectations.
This figure represents the lowest rate for August in the historical series and the lowest overall since December 2014. August also saw the creation of 232,513 new jobs in Brazil, slightly below forecasts.
Oil prices edged up amid Middle East tensions, with Brent crude dipping 3% weekly.
U.S. Markets on Friday
The Dow Jones Industrial Average edged up to another record high while declines in tech stocks pulled other indexes lower.
The Dow added 0.3% Friday. The S&P 500 slipped 0.1%, a day after setting an all-time high for the 42nd time this year. The Nasdaq composite gave back 0.4%.
Corporate News
In the corporate sphere, several Brazilian companies made significant moves:
- Direcional secured a major contract in São Paulo’s Pode Entrar housing program.
- Raizen dismissed speculation on Argentine operations sale.
- In a Brazilian energy auction, Engie, Taesa, and Cox won with steep discounts.
- Vale is seeking partners for Alianca Energia, though no decisions have been made yet.
- Brava Energy sold its stake in Santos Basin fields to American firm Westlawn.
Underlying Sentiment
Investors are closely monitoring Brazil’s economic indicators, particularly the labor market improvements.
The unemployment rate reaching a historical low for August could boost consumer confidence and spending, potentially driving economic growth.
The ongoing developments in the energy sector, including the recent energy auction and Vale’s strategic moves, are likely to keep energy and mining 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
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 | 5.08 | -0.15% | -7.91% | 5.09 | 5.09 | 5.08 | — |
| EUR/BRL | 5.78 | -0.29% | -10.93% | 5.80 | 5.79 | 5.78 | — |
| SELIC | 14.25% | — | — | — | — | — | |
| BRENT | 100.44 | +6.77% | +46.61% | 94.07 | 100.99 | 100.36 | 109 |
| WTI | 92.15 | +6.13% | +41.23% | 86.83 | 92.66 | 92.05 | 3,333 |
| IRON ORE | 161.91 | — | +64.76% | 161.91 | 161.91 | 1 | |
| GOLD | 4,051 | -2.31% | +19.36% | 4,147 | 4,054 | 4,050 | 2,255 |
| SILVER | 57.87 | -3.59% | +47.32% | 60.02 | 57.98 | 57.82 | 210 |
| 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 | — |
| SUGAR | 14.68 | -0.41% | -9.61% | 14.74 | 14.90 | 14.65 | — |
| ORANGE JUICE | 145.50 | -3.19% | -56.77% | 150.30 | 148.80 | 144.00 | — |
| 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 | — |
| 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 | 4,883,900 |
| 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 | 13,202,100 |
| 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 | 12,051,100 |
| GGBR4 | 24.06 | +0.00% | +39.72% | 24.06 | 24.41 | 23.83 | 7,628,900 |
| ENEV3 | 25.70 | -1.04% | +83.70% | 25.97 | 25.80 | 25.45 | 3,291,500 |
| LREN3 | 13.37 | -1.26% | -24.16% | 13.54 | 13.48 | 13.23 | 8,057,600 |
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