US index futures dawned this Tuesday (18), as investors await retail sales and industrial production data for June, which may provide clues about the state of the US economy before the next monetary policy meeting. The Fed’s Monetary Policy (Fed).
The US earnings season was also highlighted with the release of Bank of America (BofA) and Morgan Stanley results.
Asia-Pacific markets ended mixed, with Hong Kong stocks leading the region’s losses, and falling 2%, led by real estate and technology stocks.
Here, Vale miner (VALE3) announces its production data for the second quarter after the markets close.
1. Global Scholarships
New York index futures are trendless Tuesday morning, as investors brace for retail and industry data for June, as well as Bank of America and Morgan Stanley results.
For retail, economists expect growth of 0.5% compared to May. For the industry, the expectation is to stabilize after a month of contraction.
The data could provide clues about the health of the US economy ahead of the next US Federal Reserve monetary policy meeting.
Watch how the futures markets performed:
- Dow Jones Contracts (USA), +0.08%
- S&P 500 (US) Futures, +0.02%
- Nasdaq Futures (US), -0.06%
Asian markets ended mixed, with Hong Kong’s Hang Seng leading losses in the region, dropping 2% – dragged down by real estate and technology stocks.
The biggest losers in Hang Seng were Longfor Real Estate Development Group, which fell more than 9%, while Country Garden Holdings fell 6.67%.
Chinese real estate giant Evergrande posted sharp losses in its long-awaited 2021 and 2022 results.
The company reported a total net loss of 686.2 billion yuan (95.68 billion U.S. dollars) in 2021 and a total net loss of 125.8 billion yuan in 2022.
For 2022, most of the losses were caused by losses related to land restitution, impairment losses of financial assets and other non-operating losses, which amounted to 69.37 billion yuan.
Evergrande’s liabilities totaled 2.35 trillion yuan last year, up 23% compared to 2020, while its total assets amounted to 1.8 trillion yuan, down 20% compared to the previous two years.
- Shanghai SE (China), -0.37%
- Nikkei (Japan), +0.32%
- Hang Seng (Hong Kong) -2.05%
- Kospi (South Korea), -0.43%
- ASX 200 (Australia), -0.20%
European markets ran higher on Tuesday, as investors awaited corporate results from the US and on the eve of inflation data from the UK.
Shares in British company Ocado were among the highest on the European continent, rising 13% after the announcement of first-half results and speculation over interest in the company’s acquisition by Amazon.
- FTSE 100 (UK), +0.13%
- DAX (Germany), -0.09%
- CAC 40 (France), -0.01%
- FTSE MIB (Italy), -0.10%
- Stokes 600 + 0.14%
Oil prices are running with slight gains, reversing part of the losses incurred overnight, as investors eye the possibility of a contraction in US oil supply.
Iron ore prices in China are also operating at their highest levels in today’s session, a recovery move after declining in the previous session, with traders assessing the chances of more catalysts coming from the Asian giant.
- WTI, +0.26%, at $74.34 a barrel
- Brent crude, +0.14%, at $78.61 a barrel
- Iron ore traded on the Dalian Stock Exchange rose 0.66% to 845.00 yuan, equivalent to 117.80 US dollars.
- Bitcoin, +0.42% at $30,001.25 (24 hours ago)
Tuesday’s agenda brings industrial and retail production figures for June. For the former, economists expect a growth of 0.5% compared to May. For the industry, the expectation is to stabilize after a month of contraction.
10 am: Finance Minister Fernando Haddad met with Dario Durigan – Executive Secretary
11 am: Haddad met with Alexandre Amorim – Director – Head of the Federal Data Processing Service – SERPRO
2 p.m.: Haddad met with Roberto Forian Ardengui – President of the Brazilian Institute of Oil and Gas (IBP).
3:30 pm: Haddad meets with Ottavio Ladera – Deputy Secretary for Public Debt – STN/MF
6:30 pm: Haddad met with Georginio Melo – Governor of Santa Catarina
United States of America
9:30 a.m.: retail sales for June; The Refinitiv consensus expects a 0.5% gain from May
10:45 am: Industrial Production for June. Stability of Refinitiv Compatibility Projects for the month of May
11 am: trading stocks
3. Economic news
Haddad says that the first stage of Decinrolla can scan up to 2.5 million names
Finance Minister Fernando Haddad said last Monday (17) that the total number of Brazilians with debts of up to R$100 and whose names will be liquidated could reach R$2.5 million if Nubanque joins Desnerola. According to him, the financial institution is still deciding whether to join the program because it is entitled to a little presumptive credit, which is the incentive given by the government to the banks.
“There is only one bank that doubts whether to stick with it or not, because it does not have a huge advantage in assumed credit and has a million negatives: Nubank. We are waiting. If they join, there will be 2.5 million CPF [com o nome limpo]Haddad said. The Ministry of Finance will provide credit for joining only in the next few days.
In the first phase of Desenrola, which came into force yesterday (17), financial institutions clear the names of people who have debts of up to R$100 in arrears by December 31 of last year. Debt is not exempted. Only the debtor ceases to be a bad name and can contract new loans and carry out operations such as closing leases.
4. Political news
PGR requests access to Bolsonaro’s posts about the election
The Public Prosecutor’s Office (PGR) has asked social media platforms to display all posts made by former President Jair Bolsonaro about elections, electronic ballot boxes, and matters related to the Supreme Electoral Tribunal (TSE), the Supreme Federal Court (STF) and the armed forces.
The application was submitted by Deputy Attorney General Carlos Frederico Santos and sent to Judge Alexandre de Moraes, of the Supreme Federal Court (STF).
If the data transmission is specified by the Minister, the information will support investigations into Bolsonaro’s possible demonstrations in favor of the January 8 coup actions and pre-date anti-democratic demonstrations.
5. Corporate Radar
PRIO (PRIO3) has announced the commencement of production on well ODP5 (F23P23) at Campo dei Frade, with a steady initial production of approximately 8,000 barrels of oil per day. Thus, the oil company crossed the threshold of 100,000 barrels per day.
Telefonica Brasil (VIVT3)
Telefônica Brasil (VIVT3), the owner of Vivo, has agreed to pay interest on private capital (JCP), relating to the 2023 fiscal year, in the total amount of R$405 million, equivalent to R$0.24422941213 per share of the issue of the operator.
The JCP payment will be made by April 30, 2024, a date to be determined by the Company’s Executive Board.
(with Estadão, Reuters and Agência Brasil)