Futures in New York and European markets fell while most Asian stocks closed higher on Tuesday (5) on the return of the US Independence Day.
US Treasury Secretary Janet Yellen and China’s Vice Premier Liu He held talks Monday to discuss macroeconomic issues. The US and China are in talks to lift some Trumpera trade tariffs and sanctions, which could provide some relief to rising inflation.
As for the indicators, China’s service sector activity grew according to Caixin’s Services PMI. The index rose to 54.5 in June from 41.4 in May. However, fresh lockdowns in the country keep uncertainties about the strength of growth.
This week’s US economic calendar includes the release of minutes from the Federal Reserve’s last meeting on Wednesday and payroll on Friday. Factory orders for May are expected this Tuesday.
Here, industrial production is slightly increased in May (9:00), but the domestic scenario is dominated by the “PEC of goodness” process, which may continue to include new benefits at increasingly higher costs.
The constant opening of exceptions weakens the public spending ceiling and consequently increases the country’s fiscal risk. As fiscal risk increased, the real appreciation trend that started in early 2022 reversed.
1. World Scholarships
US futures indexes are working lower after Independence Day, with investors awaiting the release of the Fomc minutes tomorrow and Friday’s payroll.
Check out the performance of the futures markets:
- Dow Jones Futures (US), 0.51%
- S&P 500 Futures (US), 0.57%
- Nasdaq futures (US), 0.72%
Most Asia Pacific markets closed higher on Tuesday (5th).
The Reserve Bank of Australia’s expected rate hike was in the spotlight. As expected, the rate hike was 50 basis points to 1.35%.
Data released on Tuesday showed that South Korea’s consumer price index rose 6% in June compared to the same period last year. That figure was slightly higher than the expected 5.9% increase and the fastest annual increase since November 1998, according to R.
On the other hand, Chinese indices fell slightly as investors are still watching the impact of new lockdowns to stem the country’s fresh surge in Covid cases.
- Shanghai SE (China), 0.04%
- Nikkei (Japan), +1.03%
- Hang Seng Index (Hong Kong), +0.10%
- Kospi (South Korea), +1.80%
European markets fell on Tuesday as global markets failed to consolidate gains after a positive week for equities last week.
Fears of an impending recession as central banks tighten monetary policy to curb rising inflation continue to weigh on markets.
- FTSE 100 (UK), 0.96%
- DAX (Germany), 1.19%
- CAC 40 (France), 1.20%
- FTSE MIB (Italy), 0.89%
WTI crude oil prices rose on Tuesday as a strike in Norway is expected to halt oil and gas production, raising concerns over tight supply.
- WTI Oil, +0.65%, at $109.13 a barrel
- Brent Crude Oil, 0.53% at $112.90 a barrel
- Iron ore traded on the Dalian Exchange rose 1.37% to 742.50 yuan, equivalent to $110.76
- Bitcoin, +3.97% to $19,905.09 (from 24 hours ago)
The industrial production for the month of May will be released this Tuesday by the Brazilian Institute of Geography and Statistics (IBGE). The Refinitiv consensus forecasts an increase of 0.7% compared to April and 1.2% compared to May 2021.
Fenabrave will announce the number of license plates this Tuesday.
9 am: May industrial production; The Refinitiv consensus forecasts an increase of 0.7% compared to April and 1.2% compared to May 2021.
10:00 am Services PMI for June
United States of America
11:00 am: Change in May industrial orders, with Refinitiv forecast up 0.5% monthly
3. Auxiliary PEC
The Commerce Department sees no room for an increase in spending at the PEC, which increases welfare spending through December. The strategy is to try, with the support of government leaders, to get new concessions included in the House vote. The aim of the Planalto is that the proposal will be voted on on Wednesday.
In the chamber, the rapporteur, MP Danilo Forte (UniãoCE), proposes to create a petrol aid for app drivers. However, this measure is considered difficult to implement due to the lack of a register and the risk of fraud. Forte estimates that there is scope to increase the cost of the “PEC dos Auxílios” up to BRL 50 billion. Changing the PEC in the House of Representatives would force a new vote in the Senate. The government wants to guarantee the increase of Auxílio Brasil and the gas credit this month, which is considered difficult by the technical sector.
App drivers prefer BRL 1,000 allowance but would accept BRL 200
The President of the Association of Candidate Drivers of São Paulo (Amasp), Eduardo Lima, said that the category with the deputies called for the extension of the R$ 200 taxi driver allowance provided for in the “PEC dos Auxílios” also to candidate drivers.
“Equalizing the value of the truck driver benefit (R$1,000) would be ideal for the class; but we know that would be impossible at the moment given the weak economy we have today,” he says. “So our job boils down to getting our drivers involved in the value of taxi drivers so we can be successful with this change in the Rush.”
PGR wants to hear former Petrobras and BB presidents about Bolsonaro
On Monday, Assistant Attorney General Lindôra Maria Araújo asked the Supreme Court to collect the testimony of former Petrobras President Roberto Castello Branco and Banco do Brasil Rubem Novaes on President Jair Bolsonaro’s alleged interference in the state.
The requests for hearings came in the context of a criminal report sent to the Supreme Court by Senator Randolfe Rodrigues after the former Petrobras president told a group of economists on Whatsapp that his working cell phone would contain messages that would do so charge the manager.
Last Monday (4), Brazil recorded 84 deaths and 33,833 cases of Covid19 in 24 hours at 8 p.m., according to the Consortium of Press Vehicles.
The 7day rolling average of Covid deaths in Brazil was 214, up 45% from 14 days earlier.
The sevenday moving average of new cases was 57,055, up 42% from 14 days earlier.
The number of people fully vaccinated against Covid in Brazil reached 167,694,482, representing 78.06% of the population.
The number of people who took at least the first vaccine dose reached 179,164,159 people, which is 83.40% of the population.
The booster vaccination was given to 95,690,830 people or 44.54% of the population.
5. Corporate Radar
Eletrobras confirmed AGE to elect the members of the Board of Directors effective August 5, 2022.
The Articles of Association of Eletrobras provides that the Board of Directors shall be composed of 11 members, of which 3 shall be independent members, 1 shall be elected by the holders of preferred shares, 1 shall be elected by the employees and the others shall be elected by the holders of ordinary shares.
Blue Farmacêutica (BLUE3)
Blue approved the distribution of interest on equity of R$28.6 million, equivalent to R$0.1594 per share.
Payment will be made on July 15 and shares will trade exright on July 8.
(With Estadão, R and Agência Brasil)
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