Thursday’s Morning Call: Brazilian Market Insights Before Opening
This Thursday at 9:00 AM, Brazil’s statistics agency IBGE will publish its latest retail sales data, marking notable updates from Brazil and the United States.
At 9:30 AM, the U.S. will release the June CPI, providing key insights into inflation and possible interest rate changes.
Yesterday’s Market Recap
In Brazil, the Ibovespa index reported a minor increase of 0.09%, closing at 127,218 points, maintaining its upward trend for the seventh consecutive session.
Despite the gains, a drop in exporter performance, particularly in the metals sector, limited overall growth.
The trading volume on the Ibovespa reached R$15.03 billion, with the broader B3 exchange recording R$20.02 billion by the market’s close.
The Brazilian real experienced slight depreciation against the U.S. dollar, settling at R$ 5.4126, reflecting broader global currency movements.
Retail Sector Forecasts
Ahead of the earnings season, Safra Bank revised its projections for key retailers Magazine Luiza (MGLU3) and Casas Bahia (BHIA3), signaling mixed prospects.
Additionally, XP anticipates a challenging quarter for Renner (LREN3), impacted by adverse weather conditions in Rio Grande do Sul.
Inflation Dynamics in Brazil
June’s IPCA inflation in Brazil moderated to 0.21%, falling below the expected 0.32% and marking a year-on-year increase to 4.23%.
This slowdown in inflation could influence the central bank’s interest rate decisions moving forward.
U.S. Stock Market Closure
U.S. stocks ended on a high note, with the S&P 500 surpassing the 5,600 mark for the first time, driven by strong performances from major corporations such as Goldman Sachs and Walmart.
The Dow Jones and Nasdaq also experienced substantial gains, buoyed by Federal Reserve Chair Jerome Powell’s comments on the cooling job market, fostering optimism about potential monetary easing.
Looking Ahead: U.S. Economic Indicators
Market participants are keenly awaiting tomorrow’s release of the U.S. CPI and Producer Price Index (PPI) for June.
The CPI is expected to show a modest increase of 0.1% month-on-month, with an annual projection of 3.1%, slightly down from May’s 3.3%.
Oil Market Developments
Oil prices rose as Brent crude reached $85.08 and WTI hit $82.10 per barrel, driven by a larger-than-expected drop in U.S. oil and gasoline stocks.
Corporate Debt Concerns
InterCement must address a $549 million debt by July 17, which could significantly affect its operations in Brazil and Argentina.
The company’s financial stability is at risk if it fails to secure a deal or seek court protection.
Upcoming Corporate Moves
Cosan’s subsidiary Moove is preparing for a U.S. IPO, aiming to raise significant funds depending on market conditions.
This move could substantially influence Cosan’s financial strategy and market positioning.
This morning call offers a brief summary of key economic indicators, market trends, and corporate developments impacting the financial landscape in Brazil and worldwide.
Stay tuned for further updates as we monitor these evolving situations.
Live Market IntelligenceBrazil Morning Call — Live Board
Rio Times · Live Market Intelligence
Brazil Morning Call — Live Board
-0.06%
173,714.08
-0.06%
66,615.43
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10,886.14
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3,199,934
+0.46%
2,298.34
+0.58%
57,220.16
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| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 173,714.08 | -0.06% | +28.14% | 173,825.27 | 174,505 | 173,285 | — |
| USD/BRL | 5.11 | +0.19% | -8.19% | 5.10 | 5.13 | 5.10 | — |
| EUR/BRL | 5.84 | +0.16% | -9.65% | 5.83 | 5.86 | 5.83 | — |
| SELIC | 14.25% | — | — | — | — | — | |
| BRENT | 88.10 | +4.59% | +27.17% | 84.23 | 88.32 | 83.71 | 30,189 |
| WTI | 81.78 | +3.58% | +21.44% | 78.95 | 82.07 | 77.93 | 235,014 |
| IRON ORE | 161.91 | — | +66.54% | 161.91 | 161.91 | 1 | |
| GOLD | 4,019 | +0.83% | +19.86% | 3,986 | 4,105 | 4,087 | 22,196 |
| SILVER | 56.33 | +0.77% | +47.36% | 55.90 | 59.94 | 59.46 | 14,445 |
| LITHIUM | 68.38 | -0.70% | +62.23% | 68.86 | 68.77 | 67.07 | 238,663 |
| SOY | 1,203 | +0.67% | +17.05% | 1,195 | 1,204 | 1,187 | 124,466 |
| CORN | 467.50 | +5.89% | +14.44% | 441.50 | 468.25 | 458.75 | 158,875 |
| WHEAT | 682.75 | +1.19% | +24.99% | 674.75 | 685.00 | 666.50 | 81,347 |
| COFFEE | 304.70 | -5.17% | -1.36% | 321.30 | 324.40 | 311.35 | 14,662 |
| SUGAR | 14.82 | +2.63% | -11.89% | 14.44 | 14.94 | 14.39 | 62,013 |
| ORANGE JUICE | 139.35 | +4.15% | -56.28% | 133.80 | 143.80 | 130.25 | 1,268 |
| COTTON | 78.93 | +1.60% | +17.60% | 77.69 | 81.75 | 79.75 | 20,908 |
| BEEF | 220.70 | -2.81% | -1.27% | 227.07 | 223.45 | 220.50 | 25,624 |
| CATTLE | 339.35 | -2.09% | +4.74% | 346.60 | 341.05 | 337.45 | 8,898 |
| COCOA | 5,753 | +10.30% | -26.24% | 5,216 | 5,767 | 5,393 | 14,297 |
| PETR4 | 40.90 | +2.53% | +29.97% | 39.89 | 41.11 | 40.41 | 32,096,300 |
| VALE3 | 72.94 | -0.05% | +34.33% | 72.98 | 73.12 | 72.10 | 13,456,000 |
| SUZB3 | 41.93 | +0.55% | -16.97% | 41.70 | 42.62 | 41.40 | 8,204,800 |
| KLABIN | 17.58 | +1.27% | -6.99% | 17.36 | 17.64 | 17.34 | 3,993,600 |
| SLCE3 | 13.53 | -0.59% | -16.27% | 13.61 | 13.68 | 13.45 | 1,606,900 |
| ABEV3 | 15.63 | +0.19% | +16.12% | 15.60 | 15.75 | 15.51 | 16,160,200 |
| ITUB4 | 41.96 | -1.39% | +20.99% | 42.55 | 42.61 | 41.87 | 19,560,900 |
| BBDC4 | 18.29 | -0.65% | +14.10% | 18.41 | 18.48 | 18.21 | 55,066,000 |
| BBAS3 | 20.49 | -1.30% | -1.21% | 20.76 | 20.83 | 20.26 | 35,688,400 |
| B3SA3 | 15.20 | -1.23% | +10.63% | 15.39 | 15.37 | 15.17 | 48,828,300 |
| WEGE3 | 43.63 | +0.32% | +3.66% | 43.49 | 44.02 | 43.15 | 8,200,700 |
| PRIO3 | 57.85 | +1.87% | +33.60% | 56.79 | 58.00 | 57.07 | 5,306,100 |
| RENT3 | 38.23 | -1.62% | +2.33% | 38.86 | 38.80 | 37.87 | 5,880,900 |
| AZZA3 | 18.59 | +0.32% | -48.91% | 18.53 | 18.74 | 18.32 | 1,449,200 |
| CSNA3 | 5.05 | -0.98% | -36.16% | 5.10 | 5.11 | 5.00 | 7,618,200 |
| GGBR4 | 24.04 | +0.54% | +47.03% | 23.91 | 24.24 | 23.59 | 5,371,400 |
| ENEV3 | 25.68 | -1.04% | +86.63% | 25.95 | 26.18 | 25.66 | 12,337,200 |
| LREN3 | 13.42 | -1.69% | -28.31% | 13.65 | 13.65 | 13.25 | 12,910,100 |
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