Falling world stocks; Fed talks, fuel PEC and more market topics today

New York and European stock futures fell early Wednesday morning on renewed concerns about a possible global recession, as increasingly tight monetary policies prove necessary to combat high inflation.

Asian stocks also fell after consumer confidence in South Korea and Japan fell, according to official surveys.

Investors remain attentive to news from the NATO summit in Spain on Wednesday, as well as the European Central Bank (ECB) forum in Sintra, Portugal. Federal Reserve Chairman Jerome Powell and ECB President Christine Lagarde are due to speak this Wednesday morning.

In the US, the final GDP reading for the first quarter of 2022 is yet to be released, with a forecast of a 1.5% drop, according to Refinitiv.

Here, at 8 am, the IGP-M data for June comes out, with a forecast by Refinitiv, of +0.69%. At the same time, the service trust comes out.

In the afternoon, at 2:30 pm, the release of the Central Government’s primary result is scheduled. While at the corporate level, Oi holds a conference call with analysts, at 11 am, to comment on the results for the 1st quarter.

On the political side, the report on the PEC on Fuels, postponed twice, is scheduled to be presented at 9:30 am by Senator Fernando Bezerra.

Check out more highlights:

1. World Scholarships

United States

US futures indexes operate with slight losses on the morning of this Wednesday (29), after rehearsing an attempt to recover from the losses of the previous session.

Markets retreated on Tuesday after a disappointing reading in the Consumer Confidence Index, which came in at 98.7 and was below the Dow Jones estimate of 100.

Today, traders await comments from Fed Chair Jerome Powell at the ECB forum, as well as a final Q1 GDP reading.

On Wednesday, Cleveland Federal Reserve Chair Loretta Mester told CNBC that if economic conditions remain the same, when the U.S. central bank meets to decide its next monetary policy move in July, she will advocate a hike. of 75 basis points in interest rates.

See the performance of futures markets:

  • Dow Jones Future (USA), -0.13%
  • S&P 500 Futures (US), -0.23%
  • Nasdaq Futures (USA), -0.31%

Asia

Asian markets closed in the red, with consumer confidence falling in Japan and South Korea.

South Korea’s consumer sentiment index fell to 96.4 in June 2022, down 6.2 points from May’s print, according to the Bank of Korea survey.

Retail sales in Japan rose 3.6% in May compared with a year ago, a third straight month of growth, government data showed. Japanese consumer confidence fell in June, with the index at 32.1, down from 34.1 in May.

  • Shanghai SE (China), -1.40%
  • Nikkei (Japan), -0.91%
  • Hang Seng Index (Hong Kong), -1.88%
  • Kospi (South Korea), -1.82%

Europe

European markets operate lower on Wednesday (29), as investors assess the economic outlook. Losses for European markets followed the trend seen elsewhere in the world.

Among indicators, Spain’s inflation surpassed 10% in June for the first time since 1985, preliminary data showed on Wednesday. Annual inflation rose to 10.2% from 8.7% in May and above the 9% forecast by analysts polled by Reuters.

  • FTSE 100 (UK), -0.49%
  • DAX (Germany), -1.20%
  • CAC 40 (France), -0.50%
  • FTSE MIB (Italy), -1.01%

commodities

Oil prices operate between slight losses and gains this Wednesday after rising in the previous three sessions. The scenario is that the global supply squeeze will continue as there is limited room for large producers like Saudi Arabia to increase production.

  • WTI Oil, +0.36%, at $112.16 a barrel
  • Brent Oil, +0.20%, at $118.22 a barrel
  • Iron ore traded on the Dalian Exchange rose 2.29% to 803.50 yuan, equivalent to US$119.97

Bitcoin

  • Bitcoin, -5.22% to $20,058.80 (from 24 hours ago)

2. Schedule

This Wednesday (29), the final reading of the GDP of the first quarter of the USA is released, with a forecast of a fall of 1.5%, according to Refinitiv, and the weekly oil inventories (AIE), at 11:30 am, with a forecast of drop of 106 thousand barrels.

In Brazil, early, at 8:00 am, the June IGP-M data is released, with a forecast by Refinitiv, of +0.69%. At the same time the trust of services leaves.

In the afternoon, at 2:30 pm, the release of the Central Government’s primary result is scheduled.

Brazil

8 am: IGP-M

14:30: Primary result of the central government

USA

9:30 am: quarterly GDP

10 am: Speech by Fed Chair Jerome Powell

12:30: Speech by Fed Director Loretta Mester

2:05 PM: Speech by Fed Director James Bullard

3. Fuel PEC

Rapporteur Fernando Bezerra (MDB-PE) again postponed the presentation of the opinion of the PEC on Fuels in the Senate. The text will be presented this Wednesday at 9:30 am.

The reason for the third postponement of the presentation of the PEC report was not informed.

Voucher for truck drivers

The government has been finding it difficult to put up the truck driver’s voucher, an emergency benefit of R$ 1,000 that should be granted until the end of the year for the purchase of diesel, points out the broadcast. The measure was negotiated by Palácio do Planalto with congressional leaders without defining the model of the program, the list of beneficiaries, how to transfer the benefit and, later, the inspection of the use of the money.

President of Caixa

Attention is also turned to Caixa’s president, Pedro Guimarães, who, according to the Metrópoles website, is being investigated by the Federal Public Ministry after allegations of sexual harassment against employees of the state bank.

After this news, Caixa issued a statement informing that the statement and press conference on Crop Year 2022/23, scheduled to take place at Caixa Cultural Brasília, were cancelled.

4. Covid

Last Tuesday (28), Brazil recorded 294 deaths and 70,166 cases of covid-19 in 24 hours, according to information from the consortium of press vehicles, at 8 pm.

The moving average of Covid deaths in 7 days in Brazil stood at 209, an increase of 40% compared to the level of 14 days earlier.

The moving average of new cases in seven days was 54,695, which represents an increase of 30% in relation to the level of 14 days before.

The number of people fully immunized against Covid in Brazil reached 167,455,002, equivalent to 77.95% of the population.

The number of people who took at least the first dose of vaccines reached 179,049,224 people, which represents 83.35% of the population.

The booster dose was given to 101,612,791 people, or 47.3% of the population.

5. Corporate Radar

Parliamentarians and representatives of oil workers filed a Popular Action in the Federal Court of Rio de Janeiro on Tuesday (28) to annul the appointment of Caio Paes de Andrade as president of Petrobras (PETR3, PETR4).

Led by Senator Jean-Paul Prates (PT), they argue that Paes de Andrade does not meet the minimum legal requirements for the position. The initiative also includes the Parliamentary Front in Defense of Petrobras, the Single Federation of Oil Workers (FUP) and the National Association of Petroleum Workers Minority Shareholders of Petrobras (Anapetro).

Oi (OIBR3;OIBR4) recorded net income of R$1.782 billion in the first quarter of 2022 (1Q22), reversing a loss of R$3.038 billion in the same quarter of 2021.

The company attributes the profit to a positive net financial result of R$1.87 billion and an income tax and social contribution expense of R$363 million.

Routine earnings before interest, taxes, depreciation and amortization (Ebitda) grew 9.9% in 1Q22, totaling R$1.252 billion. The routine Ebitda margin reached 28.4% in the first three months of the year, an increase of 2.8 pp compared to the margin recorded in 1Q21.

B3 adjusted the amounts attributed per share related to dividends referring to 1Q22 were adjusted from R$0.06957822 to R$0.06987217, and amounts attributed per share related to the payment of interest on equity, referring to 2Q22, were adjusted from BRL 0.06064724 to BRL 0.06090346.

Payment for both will be made on July 8, 2022, based on today’s shareholding position. The shares will be traded in the “ex” earnings condition as of June 29, 2022.

Cemig (CMIG4) and Copel (CPLE6) stated that they are evaluating the effects of the law that determines the return of Pasep/Cofins taxes on ICMS paid in excess by the providers of the public electricity distribution service.

(With Estadão, Reuters and Agência Brasil)

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About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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