US and European stock market futures indexes are trading lower on Tuesday (10), with investors preparing for US economy inflation data on Thursday after the considered tone falcon (bullish on interest rates and showing concern about inflation) by Federal Reserve (Fed) members Mary Daly and Raphael Bostic. Both expect the US central bank to raise interest rates to something above 5% and hold them for a long time.
Market players await today’s wholesale trade data and will closely follow Federal Reserve Chairman Jerome Powell’s speech at a conference in Sweden. The speech could solidify bets on a lower interest rate hike at the next meeting of the monetary authority.
In these parts, the Chamber of Deputies approved yesterday (9) the federal intervention in public safety in the Federal District decreed by the President of the Republic, Luiz Inácio Lula da Silva, in response to the acts of vandalism that took place this Sunday in Brasilia . The text goes to the Senate in the form of Draft Legislative Decree (PDC) 1/23, which is expected to be voted on by senators at 11am (Brasilia time).
In the Agenda of Indicators, data from the Extended Consumer Price Index (HICP) for December will be published. The Refinitiv consensus expects an increase of 0.44% compared to November and 5.60% on an annual basis.
1. World Scholarships
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US futures indices were trading lower on Tuesday morning, with investors reflecting expectations of higher interest rates, following comments from Fed directors Mary Daly and Raphael Bostic on the eve.
Daly said the Fed Funds terminal rate should come in at “something above 5%.” “It’s reasonable for rates to stay in the 5%-5.25% range,” she predicts. You also commented that it is too early to declare victory against inflation.
Bostic also said policymakers should hike interest rates above 5% early in the second quarter and then wait “a long time.”
CONTINUE AFTER THE PUBLICITY
Investors are now turning their attention to Thursday’s inflation data.
See how the futures markets performed:
- Dow Jones Futures (US), -0.16%
- S&P 500 Futures (US), -0.12%
- Nasdaq Futures (US), -0.14%
Asia
Asian markets closed without a clear direction in today’s trading session after a rally on Wall Street lost steam as Fed officials signaled the institution was likely to raise interest rates above 5% to control l ‘inflation.
- Shanghai SE (China), -0.21%
- Nikkei (Japan), +0.78%
- Hang Seng Index (Hong Kong), -0.27%
- Kospi (South Korea), +0.05%
Europe
On a blank day for local indicators, European markets pulled back as investors prepare for more inflation data later this week, with US consumer price (CPI) data for December due on Thursday.
- FTSE 100 (UK), -0.26%
- DAX (Germany), -0.40%
- CAC 40 (France), -0.60%
- FTSE MIB (Italy), -0.29%
Goods
Oil prices are trading close to stability after falling early in today’s session on expectations that further interest rate hikes in the US will slow economic growth and limit demand for the commodity.
Two Fed members said they expect the Fed interest rate – now at 4.25% – 4.5% – to rise to a range of 5% to 5.25% to curb higher inflation rates. elevated.
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Iron ore prices in China soar as Chinese government quickly reopens borders after tight Covid restrictions.
- WTI crude oil, +0.27%, to 74.83 dollars a barrel
- Brent Oil, +0.08%, to 79.71 dollars a barrel
- Iron ore traded on the Dalian Stock Exchange rose 1.21% to 839.50 yuan, or $123.95
bitcoins
- Bitcoin, +0.18% to $17,250.28 (24 hours ago)
2. Schedule
This Tuesday’s agenda highlights the release of the extended consumer price index (HICP) for December. The Refinitiv consensus expects an increase of 0.44% compared to November and 5.60% on an annual basis.
In the United States, Jerome Powell, chairman of the Federal Reserve, will give a speech on the next steps in US monetary policy.
Brazil
9: December HICP; The Refinitiv consensus expects an increase of 0.44% compared to November and 5.60% on an annual basis.
10:30am: Auction of National Treasury Bonds
15:00: Trade balance
United States of America
11: Bulk stock
11am: Speech by Fed Chairman Jerome Powell
6.30pm: API oil stocks
CONTINUE AFTER THE PUBLICITY
3. Economic news
Haddad stands by the forecast for this week’s classifieds
Finance Minister Fernando Haddad (PT) intends to maintain the original program and announce the first economic measures this week, despite the political impact of the coups that led to the looting of the headquarters of the Three Powers, in Brasilia, according to a report from the Folha de S. Paulo.
Haddad discussed the issue with Civil House last Monday (9) and, according to interlocutors, the position was validated by President Lula.
The minimum wage can only be readjusted to R$ 1,320 in May
The government can wait until May to announce the readjustment of the minimum wage to R$1,320. The measure is under discussion and is defended by the economic area, according to the Estadão newspaper.
President Luiz has promised that he would increase the value of the benefit, but has not yet drafted an interim measure (MP) formalizing the new minimum level and has not even sanctioned the 2023 budget. according to a deputy by former president Jair Bolsonaro in December of last year. Government technicians have stated that the adjustment now would be very difficult, because there is not all the necessary budget.
4. Political news
The Chamber approves the federal intervention in public safety in DF
The Chamber of Deputies confirmed in the Plenary the federal intervention in the public safety of the Federal District decreed by the President of the Republic, Luiz Inácio Lula da Silva, in response to the vandalism that took place this Sunday in Brasilia.
The vote was symbolic. The text now goes to the Federal Senate in the form of Draft Legislative Decree (PDC) 1/23, which is expected to be voted on by senators this Tuesday.
The rapporteur of the proposal, the deputy Rubens Pereira Júnior (PT-MA) said that it is a “bitter” measure, but “necessary and proportionate” in light of the serious events that have occurred. The goal is to regain control of public order in the Federal District.
covid
This Monday, Brazil recorded 40 deaths from covid-19 in the last 24 hours, for a total of 694,949 since the start of the pandemic.
With that, the rolling average of deaths over the past 7 days is 131. Compared to the average 14 days ago, the change was -13%.
In total, the country recorded 11,752 new Covid-19 diagnoses in 24 hours, completing 36,515,758 known cases since the start of the pandemic.
5. Corporate Radar
GPA’s Board of Directors has approved this second proposal to reduce its share capital by delivering Éxito shares to its shareholders, in proportion to their respective stakes in GPA’s capital.
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The proposal to reduce the capital was preceded by a proposal, also to be submitted to the approval of the shareholders’ meeting at the AGE, to increase the share capital for an amount of R$ 2.605 billion, through the capitalization of some reserves , without the issue of new shares.
At 8:30 the dealer will hold a video conference to present the main aspects of the operation.
Ecorodovia (ECOR3)
Ecorodovias reported this Monday that vehicle traffic in December on the lanes it manages was 0.8% lower than a year earlier, in comparable terms.
The company attributed the decline mainly to the 11.8% reduction in traffic on Eco101, due to erosion and closures caused by heavy rains in Espírito Santo. The lanes have now been cleared for traffic.
(With Estadão, Reuters and Agência Brasil)
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