US futures decline after Fed; American GDP, IGP-M, Caged and more market affairs today

Most Asian markets closed higher, while US futures fell on Thursday morning (28). The move is an adjustment after the strong rally of the day before, with the Nasdaq closing last Wednesday up 4.06%, the S&P500 up 2.62% and the Dow Jones up 1.37%, after the The Federal Reserve (Fed) raised rates another 75 basis points (highly priced) yesterday, seeking to contain runaway inflation without leading to a recession. The Ibovespa also had a strong rise after the decision.

Fed Chair Jerome Powell maintained an aggressive tone on reducing inflation at a subsequent press conference, but the central bank dropped guidance on the scale of the next rate hike and acknowledged that “at some point” it will be appropriate to slow down. the pace of increases, which boosted markets.

Looking for more clues about the state of the economy, investors are awaiting a second-quarter GDP reading scheduled for 9:30 am.

On the corporate side, shares in Meta Platforms (which owns Facebook) fell 3% in the aftermarket on disappointing quarterly results, while Ford gained more than 5% after better-than-expected results and an increase in its dividend.

Investors are still awaiting the results of Apple, Amazon, Intel and Comcast scheduled for this Thursday.

Here, Ambev (ABEV3), Santander Brasil (SANB11) and Gol (GOLL4) release results before the opening.

At night, the figures for the giants Vale (VALE3) and Petrobras (PETR4) come out. Ecorodovias (ECOR3), Hypera (HYPE3), Transmissão Paulista (TRPL4), Multiplan (MULT3), Paranapanema (PMAM3), Vamos (VAMO3) and Vulcabras (VULC3) also report post-closing results.

On the economic front, we highlight formal job creation (Caged) and new inflation data measured by the IGP-M for July.

Check out more highlights:

1. World Scholarships

United States

US futures indexes fall in an adjustment movement after the strong rise the day before, reflecting the Fed’s decision and driven by the fall in Meta shares after a result below expectations.

Investors looking for more clues about the health of the economy are awaiting a second-quarter GDP reading. While two consecutive negative quarters of growth are seen by many as a recession, the official definition is more nuanced, taking into account additional factors, according to the National Bureau of Economic Research.

See the performance of futures markets:

  • Dow Jones Future (USA), -0.08%
  • S&P 500 Futures (US), -0.31%
  • Nasdaq Future (USA), -0.85%

Asia

Most stocks in the Asia-Pacific region closed higher on Thursday, echoing market valuations following the Fed’s decision to raise rates by 75 basis points to fight inflation, a widely expected move.

The Australian Bureau of Statistics released data showing June retail sales rose 0.2%. Economists polled by Reuters had predicted the report would show growth of 0.5%, up from 0.9% in May.

Samsung’s second-quarter earnings were slightly better from earnings guidance earlier this month, which led to a rally in equities in the industry.

  • Shanghai SE (China), +0.21%
  • Nikkei (Japan), +0.36%
  • Hang Seng Index (Hong Kong), -0.23%
  • Kospi (South Korea), +0.82%

Europe

European markets operate with no clear direction as stocks echo the somewhat less aggressive messages from the US Federal Reserve.

Corporate earnings continue to drive individual European share price movement, with a number of large companies reporting ahead of trading on Thursday. They included Barclays, Shell, EDF, TotalEnergies, Stellantis, Leonardo, Prada, Diageo and BT.

  • FTSE 100 (UK), -0.31%
  • DAX (Germany), -0.34%
  • CAC 40 (France), -0.11%
  • FTSE MIB (Italy), +1.00%

commodities

Oil prices extend gains from the previous session and operate higher, driven by lower crude inventories and higher demand for gasoline in the United States.

Iron ore prices rose sharply for a fifth straight session to four-week highs, spurred on by recovering steel margins in China and hopes of a solid economic recovery for the world’s biggest steel producer in the third quarter.

Steel prices also rose, reaching two-week highs in Shanghai, after a report in the Financial Times that China will help out-of-capital developers by issuing 1 trillion yuan ($148.3 billion) in loans for stalled projects.

  • WTI Oil, +1.72% at $98.94 a barrel
  • Brent Oil, +1.29%, at $108.00 a barrel
  • Iron ore traded on the Dalian Exchange rose 7.16% to 793.50 yuan, equivalent to US$117.66.

Bitcoin

  • Bitcoin, +7.58% to $22,982.71 (from 24 hours ago)

2. Schedule

After IPCA-15, another inflation data will be released this Thursday (28), the July IGP-M, with Itaú forecasting a monthly increase of 0.35%, taking the annual rate to 10.2%, of 10.7% in June.

On economic activity, the June data on formal job creation (CAGED) are released at 2 pm.

Today, the central government’s primary result for June will also be released, for which Itaú projects a surplus of R$ 14.5 billion.

Brazil

8:00 am: July IGP-M, Refinitiv consensus projects monthly increase of 0.30% compared to June

8:36 am: Electoral poll – DataFolha

9 am: Producer price index

11:00 am: Paulo Guedes, Minister of Economy, participates in the regular meeting of the Brazil Council – OECD

2pm: June Caged, with Refinitiv projection of creating 250,000 jobs

2:30 pm: Government primary result

7pm: Paulo Guedes, Minister of Economy, live interview for Bloomberg TV’s Daybreak Australia

USA

9:30 am: Q2 GDP, with Refinitiv consensus forecasting 0.5% growth over Q1 in annualized terms

9:30 am: Quarterly PCE price index

9:30 am: Claims for weekly unemployment benefits, with a Refinitiv consensus of 253,000 claims

3. Electoral system in focus

The Manifesto in Defense of Democracy created by the Law School of the University of São Paulo (USP) already has more than 165 thousand signatures. The letter gathers the signatures of jurists and also counts on the adhesion of bankers and businessmen.

Yesterday (27), President Jair Bolsonaro mocked the letter in defense of democracy after the chief executive’s repeated attacks on the Brazilian voting system.

Moments earlier, the president of the Chamber, Arthur Lira (PP-AL), said he trusted the Brazilian electoral system.

The speeches took place during the PP national convention, in which the party formalized its support for the reelection of the President of the Republic.

Inflation forced 7 out of 10 Brazilians to cut purchase items in the market

An Ipec survey commissioned by C6 Bank shows that 72% of Brazilians in the ABC classes with access to the internet have eliminated an item from their shopping list in the market in the last six months because of high prices. Inflation was the reason given by 82% of respondents for low consumption.

4. Covid

Last Wednesday (27), Brazil recorded 308 deaths and 46,461 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 227, down 8% compared to the level of 14 days earlier.

The moving average of new cases in seven days was 36,419, which represents a decrease of 33% compared to the level of 14 days before.

The number of people fully immunized against Covid in Brazil reached 168,889,517, equivalent to 78.62% of the population.

The number of people who took at least the first dose of vaccines reached 179,771,967 people, which represents 83.68% of the population.

The booster dose was given to 100,445,861 people, or 46.76% of the population.

5. Corporate Radar

The balance sheet season continues with the release of the results of Ambev (ABEV3), Santander Brasil (SANB11) and Gol (GOLL4) before the opening.

While Vale (VALE3), Petrobras (PETR4), Ecorodovias (ECOR3), Hypera (HYPE3), Transmissão Paulista (TRPL4), Multiplan (MULT3), Paranapanema (PMAM3), Vamos (VAMO3) and Vulcabras (VULC3) report their numbers after the shutdown.

Ambev (ABEV3) posted adjusted profit of R$3.0858 billion in the second quarter of 2022 (2Q22), a growth of 4.2% compared to R$2.9627 billion in 2Q21, the company said on Thursday ( 28). The performance, according to the beverage company, was driven by growth in earnings before interest, taxes, depreciation and amortization (Ebitda), partially offset by higher financial expenses.

Santander Brasil achieved managerial net income of R$ 4.084 billion in the second quarter of 2022, a decrease of 2.1% compared to the same period last year and an increase of 2.0% compared to the immediately previous quarter.

Suzano (SUZB3) reported a profit of R$182 million in 2Q22, down 98% year-on-year, below expectations The result was well below the consensus of Refinitv, which was a profit of R$1.227 billion. A year ago, Suzano’s profit (SUZB3) was R$ 10.035 billion.

The company announced a new buyback program for up to a maximum of 20 million shares of its own issuance, representing 2.8% of the total 712.407 million outstanding. The maximum term is 18 months, ending on January 27, 2024.

Assaí (ASAI3) released its results for the second quarter of 2022 (2Q22) with a net income of R$ 319 million, an increase of 20.7% in the annual comparison, the wholesale company said on Wednesday (27). ).

Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) grew 29.9% in 2Q22, totaling R$978 million.

GPA (PCAR3) had a consolidated loss of R$124 million in 2Q22, reversing a profit of R$29 million from 2Q21.

The company also reported a net loss of R$142 million to controlling shareholders, from continuing operations, reversing a profit of R$29 million from a year earlier.

Petrobras (PETR3; PETR4) signed a Conduct Adjustment Agreement (TAC) with the ANP to offset local content fines related to 22 concessions in which the state-owned company has a 100% interest, located in the Barreirinhas, Campos, Espírito Santo basins Santo, Parecis, Potiguar, Recôncavo, Santos, Sergipe-Alagoas and Solimões, committing to invest around BRL 1 billion by the end of 2026.

(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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