Global stocks retreat after better-than-expected US inflation data; services in Brazil and more market issues today

The futures indices of the USA and European stock exchanges retreat, in the same sense of the closing of the Asian markets in the morning of this Thursday (12), in continuity with the movement of Wall Street the day before. This is after the consumer price index (CPI) for April came above expectations and kept alive the possibility of the Fed accelerating and/or lengthening the tightening cycle in US interest rates.

April’s CPI jumped 8.3% year-on-year, better than expected and still close to its 40-year high of 8.5%. Analysts are still monitoring whether the data suggests that inflation has peaked.

In economic data, investors will be on the lookout for the latest jobless claims, which will be released at 9:30 am. They are also eyeing new data on the producer price index, which measures wholesale prices.

Here, the balance sheet crop continues with dozens of companies reporting their first quarter results. In terms of indicators, the monthly survey of services is released, scheduled for 9 am.

Check out more highlights:

1. World Scholarships

U.S

US futures traded lower on Thursday morning, continuing the previous day’s movement, after the latest CPI data showed higher-than-expected inflation.

The numbers did little to ease investor concerns about the outlook for inflation and interest rates.

See the performance of futures markets:

  • Dow Jones Future (USA), -0.47%
  • S&P 500 Futures (US), -0.63%
  • Nasdaq Futures (USA), -1.11%

Asia

Asian markets closed in the red on Thursday as tech stocks sold off after losses on Wall Street – after data showed the US consumer price index in April remained near its highest level in more than 40 years. .

  • Shanghai SE (China), -0.12%
  • Nikkei (Japan), -1.77%
  • Hang Seng Index (Hong Kong), -2.24%
  • Kospi (South Korea), -1.63%

Europe

European markets retreated sharply on Thursday as global markets digested the latest US inflation reading. The reading raised concerns that an aggressive rate hike path lies ahead.

Among mainland economic data, UK activity shrank 0.1% in March but expanded 0.8% in the first quarter of 2022 as a whole, official figures showed on Thursday.

  • FTSE 100 (UK), -2.25%
  • DAX (Germany), -2.19%
  • CAC 40 (France), -2.32%
  • FTSE MIB (Italy), -1.59%

commodities

Oil prices fell more than 2% on Thursday in a volatile week as economic worries and recession fears dogged global markets, overcoming supply concerns and geopolitical tensions in Europe.

  • WTI oil, -2.50% at $103.06 a barrel
  • Brent crude, -2.26% at $105.08 a barrel
  • Iron ore traded on the Dalian Exchange was down 1.36% to 796.00 yuan, equivalent to US$117.21

Bitcoin

Bitcoin price briefly dropped below $27,000 for the first time since December 2020, continuing a recent sell-off in the cryptocurrency space against a backdrop of broader risk sentiment among investors.

  • Bitcoin, -10.99% to $27,806.28 (from 24 hours ago)

2. Schedule

This Thursday (12), it is the turn of the producer price index (PPI), which, according to market projections, should advance 0.5% from March to April. Abroad, the highlight is the OPEC+ production report, at 5:55 pm.

Brazil

9 am: March Services Survey, with Refinitiv forecast up 0.7% month-on-month and 8.5% year-on-year.

USA

9:30 am: Claims for weekly unemployment insurance, consensus points to 195,000 claims

9:30 am: April producer price index (PPI), with a Refinitiv forecast up 0.5% monthly and 10.7% year-on-year

3. Speeches by the new minister

In his first speech as Minister of Mines and Energy, Adolfo Sachsida said on Wednesday that he requested studies from the federal government for the privatization of Petrobras (PETR3;PETR4) and Pre-Salt Petróleo (PPSA), responsible for the pre-salt Union contracts . An ally of the Minister of Economy, Paulo Guedes, the economist also defended the continuation of the sale of Eletrobras, which depends on the approval of the Federal Audit Court (TCU).

“My first act as Minister of Mines and Energy is to ask (Economy) Minister Paulo Guedes, chairman of the PPI (Investment Partnerships Program) Council, to take to the council the inclusion of PPSA in the PND (National Privatization Program) to evaluate the alternatives for its privatization”, he said in a statement to the press. “Still as part of my first act, I also request the beginning of studies aimed at proposing the necessary legislative changes for the privatization of Petrobras”, he added.

Tax reform should not advance in the Senate for now

Resurrected this week by the Minister of Economy, Paulo Guedes, who defended a leaner version of the tax reform, the matter shows no signs that it will walk, for now, in the Senate, although the president of the House, Rodrigo Pacheco (PSD-MG ), intends to vote on it this semester.

Sources consulted by Reuters point out that the two main senators involved in the progress of the Proposed Amendment to the Constitution (PEC) that deals with the matter – the rapporteur, Roberto Rocha (PTB-MA), and Davi Alcolumbre (União-AP), president of the of Constitution and Justice (CCJ), where the measure is currently being processed – should not resume the discussion for the time being.

House approves bonuses for federal police officers

The House approved the payment of a bonus for notice to federal police officers, amid protests by the category against the government over a promised salary increase but not delivered. The provisional measure (MP) is now being analyzed by the Federal Senate, which must approve it by May 25.

Government eliminates import tax on some foods

The federal government announced yesterday that it will zero the import tax rate for seven categories of food products. The decision was taken by the Executive Management Committee of the Foreign Trade Chamber (Gecex/Camex), of the Ministry of Economy.

In a press conference to detail the measures, the executive secretary of the portfolio, Marcelo Guaranys, said that the objective of the measure is to contain the advance of inflation in the country.

Meat, wheat flour and cookies are among the products affected by the decision.

4. Covid

Last Wednesday (11), Brazil recorded 121 deaths and 23,071 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 97, a decrease of 2% compared to the level of 14 days earlier.

The moving average of new cases in seven days was 16,413, which represents an increase of 29% in relation to the level of 14 days before.

The number of people fully immunized against Covid in Brazil reached 164,996,039, equivalent to 76.8% of the population.

The number of people who took at least the first dose of vaccines reached 177,644,296 people, which represents 82.69% of the population.

The booster dose was given to 89,015,596 people, or 41.44% of the population.

5. Corporate Radar

Dozens of companies release their first quarter results, including: Aeris (AERI3), Allied (ALLD3), Alper (APER3), Americanas (AMER3), B3 (B3SA3), Banco Modal (MODL11), Banrisul (BRSR6), Bemobi (BMOB3), Banco BMG (BMGB4), Bradespar (BRAP4), Brasil Brokers (BBRK3), Brisanet (BRIT3), brMalls (BRML3), Burger King (BKBR3), CCR (CCRO3), Cogna (COGN3), CPFL Energia ( CPFE3), Dasa (DASA3), Enauta (ENAT3), Energisa (ENGI11), Eneva (ENEV3), Eternit (ETER3), Even (EVEN3), EzTec (EZTC3), Ferbasa (FESA4), Focus Energia ([ativo=POWE3]), GPS (GGPS3), Grupo Soma (SOMA3), Guararapes Riachuelo (GUAR3), Hermes Pardini (PARD3), IMC (MEAL3), Infracommerce (IFCM3), JHSF (JHSF3) and Le Lis Blanc / Restoque (LLIS3).

Locaweb (LWSA3), Melnick (MELK3), Mosaic (MOSI3), MRV (MRVE3), Oceanpact (OPCT3), Ouro Fino (OFSA3), Plano & Plano (PLPL3), Portobello (PTBL3), Priner (PRNR3), Randon ( RAPT3), Rede D’Or (RDOR3), Smartfit (SMFT3), SYN (SYNE3), Tecnisa (TCSA3), Time For Fun (SHOW3), Track & Field (TFCO4), Trisul (TRIS3), Triunfo (TPIS3), Tupy (TUPY3), Unicasa (UCAS3), Viver (VIVR3), Westwing (WEST3), Wiz (WISZ3) and Yduqs (YDUQ3) also report results after the market closes.

Bank of Brazil (BBAS3)

Banco do Brasil (BBAS3) recorded adjusted net income of R$6.6 billion in the first quarter of 2022 (1Q22), a performance 34.6% higher than that reported in the same period of 2021.

The result was above expectations. The market consensus was for a profit of R$5.34 billion, according to analysts consulted by Refinitiv.

JBS (JBSS3)

JBS (JBSS3) reported net income of R$5.1 billion in the first quarter of 2022 (1Q22), a growth of 151.4% compared to the same quarter of 2021.

Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) grew 46.7% in 1Q22, totaling R$10.1 billion.

Minerva (BEEF3)

Minerva (BEEF3) recorded a net income of R$114.6 million in the 1st quarter, a decrease of 55.8% compared to the same period in 2021.

Ebitda totaled BRL 646 million, up 33.2% over the same period in 2021.

Braskem (BRKM5)

Braskem (BRKM5) reported net income of R$3.884 billion in the first quarter of 2022 (1Q22), a growth of 56% compared to the same quarter of 2021.

Recurring earnings before interest, taxes, depreciation and amortization (Ebitda) fell 30% in 1Q22, totaling R$4.845 billion.

Aliansce Sonae (ALSO3)

Aliansce Sonae (ALSO3) recorded a net income of R$55.9 million in the first quarter of 2022 (1Q22), a performance 33.6% higher than that reported in the same quarter of 2021.

Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) grew 27.8% in 1Q22, totaling R$184.9 million.

(With Estadão, Reuters and Agência Brasil)

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