Morning Call
Brief
Brazil’s Tuesday Morning Call: Key Economic Indicators to Watch Today
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August 20, 2024
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3 min read
Yesterday, Brazil’s Ibovespa index reached a historic high, indicating significant movement in the country’s financial market.
The dollar weakened against the Brazilian real. Positive investor sentiment drove this surge. The Brazilian central bank plans monetary policy adjustments.
Favorable economic forecasts boosted confidence in the Brazilian market. Investors viewed the Ibovespa rise as a milestone. The market showed resilience despite global uncertainties.
The Central Bank’s Focus report has elevated the inflation prediction for 2024 from 4.20% to 4.22%, which veers further from the target of 3%.
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1. Currency Markets:
- Weak housing data weakened the U.S. dollar. The dollar index fell to 102.44. Brazil’s anticipated policy shifts influenced currency dynamics.
- The Japanese yen depreciated. Policy shifts by the Bank of Japan caused this change. Broader economic evaluations also played a role.
- The British pound strengthened. Upbeat retail sales data contributed. Spending during the European Championship provided additional support.
2. Equity Markets:
- European stocks rose. Anticipations of further ECB monetary easing drove increases. Germany’s DAX and France’s CAC 40 saw significant gains.
- U.S. equities gained as well. Major indices like the Dow Jones, Nasdaq, and S&P 500 all rose.
- Asian markets experienced growth. Japan’s Nikkei 225 and India’s BSE SENSEX benefited. Positive investor sentiment and economic data supported this trend.
3. Commodities:
- Gold prices surged to over $2,500 per ounce. Safe-haven demand amid geopolitical tensions drove this increase. Speculations of U.S. rate cuts also contributed.
- Oil prices plummeted on Monday, with Brent crude dropping to $77.66 and WTI to $74.37 per barrel, influenced by potential Middle East peace talks and economic concerns in China.
Economic Agenda for August 20, 2024
Brazil:
- 08:00 AM: The Getúlio Vargas Foundation will release August’s second General Price Index – Market (IGP-M) preview. This index gauges rental inflation trends in Brazil. Inflation projections for Brazil have increased.
- 10:00 AM: The National Confederation of Industry (CNI) will publish its Construction Industry Survey results. These insights reveal the sector’s health and outlook.
Germany:
- 03:00 AM: Germany’s Producer Price Index for July will become available. This index offers insights into industrial price pressures. It evaluates inflationary trends in Europe’s largest economy.
Eurozone:
- 06:00 AM: The final Consumer Price Index for July will be released. This index assesses inflation. It guides ECB policy decisions.
Mexico:
- 09:00 AM: June’s retail sales data will be disclosed. This data indicates consumer confidence and spending patterns.
- 12:00 AM: The weekly international reserves update will be available. This update is important for understanding Mexico’s economic stability.
Market Sentiment and Key Topics
Investor mood remains cautiously optimistic. Recent positive data and policy adjustments influence this sentiment.
Key topics include global central bank policy adjustments. Geopolitical tensions and trade dynamics also play roles.
Today’s economic releases are critical for investors. Inflation data from Brazil, Germany, and the Eurozone provide clues. These insights impact investment strategies and market movements globally.
By analyzing these factors, investors can better understand economic activities. This understanding helps make informed decisions in a dynamic environment.
Brazil’s Tuesday Morning Call: Key Economic Indicators to Watch Today
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Brazil Morning Call — Live Board
Ibovespa · benchmark
176,444.54
-0.62%
-0.62%
L 176,293day rangeH 177,896
+30.37% over 12 months
Market breadth · 33 names
30% advancing
10 ▲ advancing23 declining ▼
Currencies, rates & key inputs
USD / BRL
5.08
+0.59%
EUR / BRL
5.79
-0.20%
Selic rate
14.25%
·
Brent crude
99.94
+6.24%
Iron ore
161.91
·
Sector heatmap · average move today
Energy
+1.27%
PETR4, PRIO3
Other
+0.41%
BRENT, WTI, IRON ORE, GOLD
Mining
-0.17%
VALE3, CSNA3, GGBR4
Utilities
-1.12%
ENEV3
Materials
-1.16%
SUZB3, KLABIN
Financials
-1.20%
ITUB4, BBDC4, BBAS3, B3SA3
Industrials
-1.66%
WEGE3, RENT3
Consumer Staples
-1.74%
SLCE3, ABEV3
Consumer Disc.
-2.77%
AZZA3, LREN3
Latin America scoreboard
IndexLastTodayStrength
IbovespaBrazil
176,444.54
-0.62%
176,444.54
-0.62%
S&P/BMV IPCMexico
67,298.78
+0.88%
67,298.78
+0.88%
S&P IPSAChile
10,924.91
-0.77%
10,924.91
-0.77%
S&P MERVALArgentina
3,340,763
-1.15%
3,340,763
-1.15%
MSCI COLCAPColombia
2,298.59
+0.07%
2,298.59
+0.07%
BVL S&P PerúPeru
57,575.02
—
57,575.02
—
Full instrument board
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 176,444.54 | -0.62% | +30.37% | 177,547.57 | 177,896 | 176,293 | — |
| USD/BRL | 5.08 | +0.59% | -8.62% | 5.05 | 5.09 | 5.04 | — |
| EUR/BRL | 5.79 | -0.20% | -11.31% | 5.80 | 5.79 | 5.76 | — |
| SELIC | 14.25% | — | — | — | — | — | |
| BRENT | 99.94 | +6.24% | +45.88% | 94.07 | 102.01 | 94.88 | 46,639 |
| WTI | 91.63 | +5.53% | +40.43% | 86.83 | 93.50 | 87.32 | 371,064 |
| IRON ORE | 161.91 | — | +64.76% | 161.91 | 161.91 | 1 | |
| GOLD | 4,052 | -2.28% | +19.40% | 4,147 | 4,144 | 4,043 | 152,498 |
| SILVER | 57.86 | -3.60% | +47.31% | 60.02 | 60.36 | 57.32 | 33,738 |
| LITHIUM | 69.01 | +0.01% | +55.15% | 69.00 | 69.68 | 68.65 | 134,036 |
| 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 | 42.94 | +0.85% | +34.04% | 42.58 | 43.49 | 42.86 | 21,470,700 |
| VALE3 | 75.47 | +0.49% | +31.44% | 75.10 | 77.07 | 74.51 | 14,273,400 |
| SUZB3 | 42.43 | -0.54% | -18.01% | 42.66 | 42.82 | 41.78 | 2,032,300 |
| KLABIN | 17.61 | -1.78% | -4.78% | 17.93 | 17.92 | 17.41 | 4,172,700 |
| SLCE3 | 13.69 | -1.93% | -14.63% | 13.96 | 14.06 | 13.69 | 1,922,600 |
| ABEV3 | 15.88 | -1.55% | +16.63% | 16.13 | 16.11 | 15.84 | 15,797,100 |
| ITUB4 | 42.40 | -1.17% | +23.55% | 42.90 | 42.87 | 42.27 | 19,002,700 |
| BBDC4 | 18.74 | -1.21% | +17.95% | 18.97 | 18.99 | 18.68 | 15,254,000 |
| BBAS3 | 20.93 | -0.76% | +3.51% | 21.09 | 21.08 | 20.78 | 16,782,100 |
| B3SA3 | 15.64 | -1.64% | +16.80% | 15.90 | 15.82 | 15.48 | 36,368,900 |
| WEGE3 | 45.37 | -2.93% | +19.02% | 46.74 | 46.86 | 44.68 | 11,670,200 |
| PRIO3 | 60.78 | +1.69% | +43.11% | 59.77 | 61.35 | 60.56 | 5,836,600 |
| RENT3 | 37.00 | -0.38% | +2.51% | 37.14 | 37.19 | 36.03 | 12,296,300 |
| AZZA3 | 17.05 | -4.27% | -54.07% | 17.81 | 17.71 | 17.03 | 2,198,200 |
| CSNA3 | 5.33 | -0.93% | -39.34% | 5.38 | 5.61 | 5.30 | 11,037,800 |
| GGBR4 | 24.04 | -0.08% | +40.19% | 24.06 | 24.41 | 23.83 | 6,397,500 |
| ENEV3 | 25.68 | -1.12% | +83.85% | 25.97 | 25.80 | 25.45 | 2,504,300 |
| LREN3 | 13.37 | -1.26% | -24.33% | 13.54 | 13.48 | 13.23 | 6,608,700 |
Largest moves today
The session read
The Ibovespa eased 0.62%, with breadth negative — 10 of 33 names higher. Energy led, while Consumer Disc. lagged.
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