Financial Morning Call for Brazil – September 2, 2024

Last week, Brazil’s economic attention centered on the release of the IPCA-15 index, a preliminary measure of inflation.

It showed a modest 0.19% increase for August. This marked a slowdown from July’s 0.30% rise. The result aligned with market expectations, indicating controlled inflation.

In the U.S., attention was on the PCE price index. It rose by 0.2% in July. Annually, the PCE increased by 2.5%.

This figure surpassed the Federal Reserve’s 2% target, showing ongoing inflationary pressures.

Economic Agenda for September 2, 2024

As we enter this week, several key economic releases await:

Brazil

• 8:00 AM: FGV – IPC-S (weekly)
• 8:25 AM: BCB – Focus Report (weekly)

Mexico

• 12:00 PM: Remittances (July)

Market Performance Last Week

Brazilian Market

Throughout August, the Ibovespa showed resilience. It maintained the 136,000 level. The index achieved a monthly gain of over 6%.

Despite a 0.03% decrease on the final trading day, it closed at 136,004.01 points. The index recorded a weekly gain of 0.29%.

Meanwhile, the Brazilian real appreciated against the U.S. dollar. It closed at R$5.6350, a 0.21% increase. Strategic interventions from Brazil’s Central Bank supported this stability.

International Markets

U.S. Markets

U.S. stock markets rallied after Jerome Powell’s dovish comments. He signaled potential rate cuts at the Jackson Hole Symposium.

This led to a decrease in the U.S. dollar’s value. Stock prices increased, with Nasdaq up 0.6%.

The S&P 500 gained 0.4%, and Dow Jones rose 0.1%. Treasury yields fell, reflecting expectations of monetary easing.

European Markets

The German CPI remained stable. The Eurozone’s CPI Flash Estimate indicated decreased inflationary pressures. These developments caused minimal market disruption.

Asian Markets

Asian equities rose, influenced by the Japanese yen’s strength. The Bank of Japan’s hawkish stance contrasted with the U.S. Fed’s dovish signals.

Commodities and Currencies

• Commodities: Crude oil prices declined, continuing a trend of easing. Gold, which performed well earlier, turned down. The dollar’s earlier strength affected gold.
• Currencies: The U.S. dollar weakened after Powell’s speech. This supported other currencies like the Canadian dollar. The Japanese yen also gained.

Company and Crypto News

• Marcopolo Shares: Shares soared as JPMorgan forecasted over 70% upside potential.
• Cosan’s Investments: Strategic investments shape Brazil’s green agenda.
• Cryptocurrency Expansion: Rapid expansion of cryptocurrency users in Latin America.
• Gerdau’s Financial Windfall: Unexpected financial gains have market implications.
• Vale’s Privatization: Brazil’s High Court upheld Vale’s privatization, marking a significant turning point.

This report provides an overview of economic and market developments. It sets the stage for the week ahead.

Related coverage: Marcopolo Shares Soar as JPMorgan Forecasts Over 70% Upside Potential · Ibovespa Weathers Volatility to Close August with Notable Gains · From 3R Petroleum to Brava Energia: Unveiling a Strategic Rebrand · Global Shifts in Oil Production Impact Prices Amid Geopolitical Tensions

This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error

LatAm Markets: Live Signals → — real-time movers, turnover leaders and FX across Latin America.