New York index futures and European markets rose on Tuesday morning (10), in a recovery movement after a broad sell-off in recent days, mainly motivated by concerns about inflation and rising interest rates, that could lead to a global recession.
Meanwhile, the benchmark 10-year US Treasury note yield rose to its highest level since late 2018, topping 3%.
The war between Russians and Ukrainians remains another source of tension in the market. Russian President Vladimir Putin tried to justify his unprecedented invasion of Ukraine on Monday, which was Russia’s “Victory Day” – one of the most important events on the country’s national calendar, marking the Soviet victory over Germany. Nazi.
The West was “preparing for the invasion of our land, including Crimea,” Putin said without providing evidence, according to Reuters. He added that NATO was creating threats on Russia’s borders.
Here, the expectation is for the minutes of the last Copom meeting (8:00 am), when the committee left open the possibility of another interest rate hike, with less intensity, in which the minutes can help to see how big this rise in interest can be.
In the corporate field, CVC (CVCB3), Grupo SBF (SBFG3) and Telefônica (VIVT3), among others, release results for the first quarter, after the markets close.
Check out more highlights:
1. World Scholarships
U.S. index futures advance after the S&P 500 fell to its lowest level in more than a year the day before.
The bearish move came as inflation fears continued to hit markets on all sides. Technology stocks were the most impacted. Shares in Meta and Alphabet were down 3.7% and 2.8%, respectively. Tesla shares fell more than 9% in a sell-off driven by mega-cap growth stocks as investors grew more concerned about rising interest rates.
See the performance of futures markets:
- Dow Jones Futures (USA), +0.92%
- S&P 500 Futures (US), +1.07%
- Nasdaq Futures (US), +1.65%
Asian markets mostly closed lower, with the highlight being the 1.84% drop in the Hong Kong Hang Seng index after a holiday on Monday.
- Shanghai SE (China), +1.06%
- Nikkei (Japan), +0.58%
- Hang Seng Index (Hong Kong), -1.84%
- Kospi (South Korea), -0.55%
European markets traded after regional markets fell to two-month lows on Monday as risky assets fled en masse on inflation fears.
On the radar of indicators, the index of economic expectations in Germany rose from -41 points in April to -34.3 points in May, according to a survey released on Tuesday by the German institute ZEW. The result surprised analysts consulted by The Wall Street Journal, who had forecast a drop in the indicator to -44.5 points. On the other hand, the current conditions index measured by the ZEW worsened over the same period, from -30.8 to -36.5 points.
- FTSE 100 (UK), +0.72%
- DAX (Germany), +1.61%
- CAC 40 (France), +1.12%
- FTSE MIB (Italy), +1.61%
Oil prices were higher on Tuesday, reversing some of the previous day’s sharp declines, as Covid-19 lockdowns in China, a strong dollar and rising recession risks fueled concerns about the outlook for global demand.
On the other hand, the session is again bearish for Dalian-traded iron ore, with concerns about higher interest rates and demand still stagnant in China on the radar.
- WTI Oil, +0.58%, at $103.69 a barrel
- Brent crude, up 0.57% at $106.51 a barrel
- Iron ore traded on the Dalian Exchange was down 4.12% to 779.00 yuan, equivalent to US$116.03
- Bitcoin, -5.46% to $31,792.53 (from 24 hours ago)
Tuesday started with the Fipe CPI (5h) and the ZEW index in Germany and the euro zone (6h). The Consumer Price Index (CPI), which measures inflation in the city of São Paulo, rose 1.33% in the first four weeks of May, decelerating from the 1.62% gain seen in April, according to data published this Tuesday. Friday, 10th, by the Economic Research Institute Foundation (Fipe).
In Brazil, attention to the minutes of the last meeting of the Monetary Policy Committee (Copom). Last week, the BC raised the Selic by 1 percentage point and left the door open for a new high “of lesser magnitude”, according to the statement accompanying the decision. Afterwards, Brazilian retail data are released (9h). In the US, there is a change in API oil stocks (5:30 pm). In the evening, data on inflation in China will be released (10:30 pm).
8:00 am: Copom Minutes
9am: March retail sales, with Refinitv consensus up 0.4% month-on-month and up 2.05% from last year
17:30: Change in oil stocks – API
3. Government will reduce tariffs on imported products
To try to curb inflation, the government will reduce the import tax on 11 products to zero. Among the items, there are basic food baskets and steel products used by civil construction. In addition, the Common External Tariff (TEC) in force in Mercosur will be reduced by 10%.
Guedes defends taxing the super-rich and exempting companies
To unlock the tax reform in the Senate, the Minister of Economy, Paulo Guedes, said last Monday (9) that the government can present a “leaner” version of the project with the proposal to increase the income tax on super workers. -rich and reduction of taxes levied on companies.
TSE rejects Armed Forces recommendations
The Superior Electoral Court (TSE) sent, this Monday, the answers made to the new suggestions of the Armed Forces on the electoral system. In the 35-page document, the TSE’s technical team defended the security of electronic voting machines and said that there is no “dark room” for counting votes. The information is from the newspaper Valor.
Government studies relief for truckers with more frequent correction of the freight table
The government wants a rapprochement with truck drivers and is studying new measures to ease the pockets of these professionals, with an eye on the elections, reports O Globo. The topic gained urgency with the announcement of yet another diesel readjustment. Among the proposals under study is the most frequent correction of the freight table, to accompany the correction of fuels. Actions to reduce bureaucracy and cost for the category are also being studied, such as registration with the ANTT, registration of trucks and issuance of a driver’s license, in addition to the social security contribution on freight.
Last Monday (9), Brazil recorded 59 deaths and 10,606 cases of covid-19 in 24 hours, according to information from the consortium of press vehicles, at 8 pm.
The moving average of deaths from Covid in 7 days in Brazil stood at 84, down 12% compared to the level of 14 days earlier.
The moving average of new cases in seven days was 16,219, which represents an increase of 19% compared to the level of 14 days earlier.
It reached 164,734,982 people fully immunized against Covid in Brazil, equivalent to 76.68% of the population.
The number of people who took at least the first dose of vaccines reached 177,532,063 people, which represents 82.64% of the population.
The booster dose was given to 88,344,726 people, or 41.12% of the population.
5. Corporate Radar
Alupar (ALUP11), Armac (ARML3), BrasilAgro (AGRO3), CSU Cardsystem (CARD3), Cury (CURY3), CVC (CVCB3), Grupo SBF (SBFG3), Log-In (LOGN3), Mobly (MBLY3), Nutriplan (NUTR3), Qualicorp (QUAL3), São Carlos (SCAR3), Valid (VLID3), and Telefônica (VIVT3) report results for the first quarter, after the market closes.
Via (VIIA3) had an accounting profit of BRL 18 million, according to data sent to the CVM, which represented a 90% drop compared to BRL 180 million in the same period in 2022.
The company also reported a comparable profit of R$ 86 million, in which it registered a rise of 36.5%.
BB Seguridade (BBSE3)
BB Seguridade earned R$ 1.179 billion in the 1st quarter, up 20.7% year-on-year.
The result of participation reached the figure of 1.179 billion in the first three quarters of this year, an increase of 21.4% compared to 1Q21.
Assaí reported net income of R$214 million in the first quarter, a decrease of 10.8% compared to the same period in 2021.
Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) grew 17.3% in 1Q22, totaling R$752 million.
Méliuz (CASH3) recorded a net loss of R$6.5 million in the first quarter of 2022 (1Q22), reversing a profit of R$3 million from the same quarter of 2021.
Petrorio (PRIO3) had a daily production of 33,700 barrels of oil equivalent in April this year, a reduction of 3.4% compared to March 2022.
Oil sales totaled 882.8 thousand barrels, a decrease of 10.6% compared to the immediately previous month.
Enauta’s total production in April reached 623.3 thousand barrels of oil equivalent (boe), or average daily production of 20.8 thousand boe, the highest production of the year, surpassing the month of March, when it reached 20.5 thousand boe .
In total for the year, the company produced 18,400 boe on average daily.
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