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US futures and European stocks fall after the Dow Jones’ worst day since 2020; US jobs and more market affairs today

New York and European stocks futures fell, while Asian markets closed lower, with the exception of the Nikkei, which returned this Friday (6) after a long holiday, following global caution after Wall Street recorded its worst day. since 2020.

The Dow Jones Industrial Average was down more than a thousand points, down 3.12%, and the Nasdaq Composite was down nearly 5% on Thursday, erasing Wednesday’s rally. Initial relief from the Federal Reserve’s decision to avoid more aggressive hikes has apparently given way once again to fears that a sharp upswing cycle to curb rising inflation could hurt economic growth.

Also read: Stock markets have collapsed with the Federal Reserve: what has changed in the market’s view?

Monetary policy continues to dictate market sentiment. Global bond yields have risen in recent weeks as investors react to interest rate hikes from the Fed and Bank of England. The European Central Bank has yet to do the same, but it seems that momentum for a summer rally is building.

Meanwhile, investors are monitoring Russia’s progress in eastern and southern Ukraine as its forces appear to have stepped up attacks in the regions.

In indicators, investors are awaiting the US jobs report for April, due out this Friday morning. Economists polled by Dow Jones expect employers to have added 400,000 jobs to nonfarm payrolls, down from 431,000 in March, while the Refinitiv consensus expects 391,000 jobs to be created. The unemployment rate is expected to fall to 3.5% in April from 3.6% in March, according to Dow Jones.

In Brazil, minutes before Petrobras announced its result, last night, Bolsonaro exalted himself in his live and said that profit is “a rape” and “a crime”. Closing the week, the figures for Porto (PSSA3) and Sabesp (SBSP3) are released, both after the market closes. Investors still resonate with the disclosure of results such as Bradesco (BBDC4), among other companies.

Check out more highlights:

1. World Scholarships

U.S

U.S. futures traded lower on Friday after the Dow Jones traded its worst day since 2020.

Tech stocks took the brunt of Thursday’s slump, with cloud companies, electronics retailers and mega-cap names seeing sharp declines.

See the performance of futures markets:

  • Dow Jones Futures (USA), -0.11%
  • S&P 500 Futures (US), -0.16%
  • Nasdaq Future (USA), -0.24%

Asia

Asian markets largely fell on Friday after an overnight slump on Wall Street sent the Dow Jones Industrial Average to its worst day since 2020.

Hong Kong’s Hang Seng index led losses regionally as it fell 3.81% to close at 20,001.96.

Data shows that the recent Covid lockdowns in China are hitting more than just Beijing and Shanghai, where the bulk of the new infections have been found.

  • Shanghai SE (China), -2.16%
  • Nikkei (Japan), +0.69%
  • Hang Seng Index (Hong Kong), -3.81%
  • Kospi (South Korea), -1.23%

Europe

European markets operate lower after the Wall Street sell-off, when the Dow Jones Industrial Average tumbled more than 1,000 points and the Nasdaq tumbled nearly 5% on Thursday, erasing Wednesday’s rally.

  • FTSE 100 (UK), -0.95%
  • DAX (Germany), -0.73%
  • CAC 40 (France), -1.19%
  • FTSE MIB (Italy), -0.30%

commodities

Oil prices rose for a third straight session on Friday, ignoring concerns about global economic growth as concerns over supply tightness supported prices ahead of an impending European Union embargo on Russian oil.

Ore fell sharply in Dalian, with China reinforcing its tough Covid-19 response policy that has hit economic activity, prompting traders to be more cautious.

  • WTI Oil, +1.63%, at $110.03 a barrel
  • Brent crude, up 1.69% at $112.77 a barrel
  • Iron ore traded on the Dalian Exchange was down 5.12% at 825.00 yuan, equivalent to US$123.50

Bitcoin

  • Bitcoin, -8.20% to $36,285.07 (from 24 hours ago)

2. Schedule

The week ends with IGP-DI data in Brazil (8h). In the US, there is the non-agricultural payroll and the unemployment rate (both 9:30 am).

Brazil

8:00 am: April IGP-DI, with Refinitiv forecast for a monthly increase of 0.88%

USA

9:30 am: Payroll – April monthly employment report, with Refinitiv consensus of 391,000 job creation

9:30 am: Monthly unemployment rate, projected at 3.5%

3pm: Baker Hughes rig count

3. Audit of the electoral system

President Jair Bolsonaro (PL) said this Thursday (5) that his party will hire a company to audit the Brazilian electoral system. And he said that the Superior Electoral Court (TSE) will be “in a very complicated situation” if the company concludes that the system is not auditable – which the court rejects.

Defense demands TSE on disclosure of suggestions made by the Armed Forces for elections

The Ministry of Defense demanded that the Superior Electoral Court (TSE) disclose material sent by the Armed Forces with suggestions that, in the opinion of the military, would increase the security and transparency of the electoral process.

Carmen Lúcia sends inquiry against ex-Minister of Education to first instance

The Federal Supreme Court (STF) determined that the inquiry opened against former Minister of Education Milton Ribeiro be sent to the first instance. The investigation was launched in March to investigate the influence of pastors in releasing funds from the ministry.

With Bolsonaro’s trip, Pacheco assumes the Presidency of the Republic

Senate President Rodrigo Pacheco (PSD-MG) will assume the Presidency of the Republic this Friday (6th). With the trips of President Jair Bolsonaro, Vice President Hamilton Mourão and Speaker of the House Arthur Lira, all this Friday, the command of the nation falls to the President of the Senate, third in the line of presidential succession.

“I was informed by the Civil House, also by the GSI [Gabinete de Segurança Institucional], regarding the trip of the President of the Republic to Guyana. And then, naturally, in this line of succession, also with international trips by the vice president [da República] and the president of the Chamber, Arthur Lira, it is up to the president of the Senate to do so. And so it will be done by the presidency of the Senate”, said Pacheco, in a quick speech in the Senate, this afternoon (5).

According to Pacheco, no act or measure will be signed.

MP forces notaries to digitize services

The Chamber of Deputies approved this Thursday (5th) a provisional measure (MP) that obliges all notaries to adhere by February 2023 to the Electronic System of Public Records (Serp), a private entity that will concentrate information from the records on the internet. The bill will go on to vote in the Senate, which must approve it by June 1.

4. Covid

Last Thursday (5), Brazil recorded 151 deaths and 21,112 cases of covid-19 in 24 hours, according to information from the consortium of press vehicles, at 20:00.

The moving average of Covid deaths in 7 days in Brazil stood at 97, up 3% compared to the level of 14 days earlier.

The moving average of new cases in seven days was 15,087, which represents an increase of 15% in relation to the level of 14 days before.

It reached 164,520,053 people fully immunized against Covid in Brazil, equivalent to 76.58% of the population.

The number of people who took at least the first dose of vaccines reached 177,356,086 people, which represents 82.56% of the population.

The booster dose was given to 87,368,299 people, or 40.67% of the population.

5. Corporate Radar

Porto (PSSA3) and Sabesp (SBSP3) release balance sheets for the first quarter, both after the market closes.

Petrobras (PETR3;PETR4)

Petrobras (PETR3;PETR4) recorded a net profit of R$ 44.561 billion in the first quarter, an increase of 3,718%, compared to R$ 1.167 billion a year earlier. profit of R$ 37.160 billion.

Petrobras approved dividends in the amount of R$3.715490 per share. Payment will be made in two equal installments, the first installment, in the amount of R$1.857745 per outstanding preferred and common share, will be paid on June 20, 2022. The second installment, in the amount of R$ 1.857745 per preferred and common share, will be paid on July 20, 2022.

The cut-off date will be May 23, 2022 for holders of Petrobras shares traded on the B3 and the record date will be May 25, 2022 for holders of ADRs traded on the New York Stock Exchange (NYSE).

Bradesco (BBDC4)

Bradesco (BBDC3;BBDC4) recorded recurring net income of R$6.821 billion in the first quarter of 2022 (1Q22), representing an increase of 4.7% compared to the same period in 2021, when it recorded a profit of R$6.515 billion. The bank released its figures on Thursday (5).

According to a Refinitiv consensus with analysts, the bank was expected to post a profit of BRL 6.762 billion, or an increase of 3.8% on an annual basis.

Natura (NTCO3)

Natura (NTCO3) recorded a net loss of R$643.1 million in the first quarter of 2022 (1Q22), which represents a growth of 314.4% compared to the same quarter of 2021.

Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) fell 38.1% in 1Q22, totaling R$595.9 million.

Renner Stores (LREN3)

Lojas Renner (LREN3) recorded a profit of R$191.6 million in the 1st quarter of this year, reversing a loss of R$147.7 million from a year earlier.

Total adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) amounted to R$383.2 million, up 1,105% from R$31.8 million a year earlier. Meanwhile, the total adjusted Ebitda margin was R$17.2%, against 2.3% a year earlier (+14.9 pp.).

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