Global stocks rise as restrictions eased in China; Fuels PEC, Caged and more market affairs today

New York and European stock futures indices operate higher, in the same direction as Asian markets closed on Tuesday (28), after China loosened strict health controls in Beijing and Shanghai, with covid cases under control.

Chinese authorities halved the quarantine period to seven days, with another three days at home, which gave markets a sign that Beijing is relaxing its strict approach to eradicating Covid-19.

US investors will be looking closely at more data, including June consumer confidence and April home prices, to gauge the health of the economy.

Fears of a recession have increased recently as the Federal Reserve tries to combat rising inflation with aggressive rate hikes, resulting in volatile risk sentiment across the world.

In other news, the Group of Seven summit in Germany will conclude today. The meeting of leaders of the world’s seven richest nations saw the group reaffirm its support for Ukraine, saying it will support the country “as long as necessary”.

Here, the fiscal risks only increase with the Fuel PEC that should be presented today by the rapporteur Fernando Bezerra Coelho (MDB-PE). The reading of the opinion is scheduled for 11 am. The Ministry of Labor reported that the May Caged will be released today, around 10:30 am.

In the corporate field, Oi (OIBR3;OIBR4) should disclose its results for the first quarter of 2022, whose presentation had been postponed.

Check out more highlights:

1. World Scholarships

United States

US futures indexes reverse part of yesterday’s losses (27) and operate higher this Tuesday (28), with investors rebalancing their portfolios with the end of the quarter.

Investors will monitor more data on Tuesday, including consumer confidence in June and home prices in April to gauge the health of the economy. Fears of a recession have increased recently as the Federal Reserve tries to fight rising inflation with aggressive rate hikes.

Major banks increased their dividends in response to the Fed’s successful clearing of this year’s stress tests, including Bank of America, Morgan Stanley and Goldman Sachs. JPMorgan and Citigroup, however, said increasingly stringent capital requirements forced them to keep their dividends unchanged.

See the performance of futures markets:

  • Dow Jones Futures (USA), +0.50%
  • S&P 500 Futures (US), +0.47%
  • Nasdaq Futures (US), +0.48%

Asia

Asian markets closed higher on Tuesday (28), after China decided to promote the relaxation of restrictions in Shanghai and Beijing, with the number of cases under control.

On the corporate front, Trip.com reported a net loss of 989 million Chinese yuan (US$147.79 million) in the first quarter of 2022.

  • Shanghai SE (China), +0.89%
  • Nikkei (Japan), +0.66%
  • Hang Seng Index (Hong Kong), +0.85%
  • Kospi (South Korea), +0.84%

Europe

European markets operate higher following gains in the Asia-Pacific region, which has entered positive territory on news of easing of Covid-related restrictions in China.

In Spain on Tuesday, the NATO summit begins with the war in Ukraine high on the agenda. Alliance Secretary General Jens Stoltenberg said on Monday that NATO will greatly increase its high readiness force, increasing the number of troops from 40,000 to 300,000.

GfK’s German consumer confidence survey showed on Tuesday that consumer sentiment in Europe’s biggest economy is set to fall to a record low in July, as the war in Ukraine and supply chain disruptions further drive prices higher. of food and energy.

Attention also to the speech of Christine Lagarde, president of the European Central Bank. She played down concerns about a recession in the Eurozone, but also pointed out that her team is ready to raise interest rates at a faster pace if inflation continues to rise.

  • FTSE 100 (UK), +0.85%
  • DAX (Germany), +0.77%
  • CAC 40 (France), +1.38%
  • FTSE MIB (Italy), +1.11%

commodities

Oil prices advanced for the third consecutive session on Tuesday (28), as perceptions grow that the main producers Saudi Arabia and the United Arab Emirates are unlikely to be able to increase production significantly, while political unrest in Libya and the Ecuador increased supply concerns.

Iron ore prices extend gains from the previous session, as Chinese authorities announced relaxation of restrictions.

  • WTI Oil, +1.18%, at $110.87 a barrel
  • Brent crude, up 1.29% at $116.57 a barrel
  • Iron ore traded on the Dalian Exchange rose 6.31% to 809.00 yuan, equivalent to US$121.01

Bitcoin

  • Bitcoin, -1.63% to $21,104.88 (from 24 hours ago)

2. Schedule

Brazil

8am: June industry confidence

9:00 am: Paulo Guedes, Minister of Economy, participates in the Telebrasil Summit 2022 Panel Ceremony

10:30 am: May Caged

11:00 am: José Carlos Oliveira, Minister of Labor and Social Security, and team comment on Caged at a press conference

2:30 pm: Monthly public debt report

5 pm: Guedes meets with Federal Deputy Red (PL-PR)

18:00: Guedes has a meeting with parliamentarians from the Agriculture, Livestock, Supply and Rural Development Committee

USA

11am: June Consumer Confidence

1:30 pm: Speech by San Francisco Federal Reserve Chair Mary Daly

17:30: Oil Stocks (API) Weekly

euro zone

9:45 am: Speech by European Central Bank President Christine Lagarde

3. Petrobras will have new dynamics, says Bolsonaro

President Jair Bolsonaro said on Monday that his nominee for the presidency of Petrobras, Caio Paes de Andrade, will give a “new dynamic” to the company. “Caio is taking over Petrobras today, we will have new dynamics in the fuel issue. Everything will be analyzed on the basis of the law, without wanting to mess with the pen in the State-Owned Companies Law, without wanting to interfere in anything, but with a lot of respect and a lot of responsibility ”, he declared.

fuel PEC

The Fuel PEC should be presented today by the rapporteur Fernando Bezerra Coelho (MDB-PE). The reading of the opinion is scheduled for 11 am.

Government parliamentarians are evaluating guaranteeing the granting of gas vouchers every month. Today, the government pays 50% of the value of the cylinder every two months. In the fuel package being discussed in Congress, the value of the benefit will double to 100% of the price of the cylinder. But the political core is pushing to increase the frequency as well.

The reinforcement in the gas voucher will be included in the PEC in progress in the Senate. The PEC will also reinforce Auxílio Brasil, raising the social benefit floor from R$400 to R$600. 30 billion by December of that year.

On Friday, the rapporteur predicted an expense for the two aids of R$ 23.1 billion – R$ 21.6 billion from Auxílio Brasil and R$ 1.5 billion from the gas voucher. Bezerra estimated a cost of R$ 34.8 billion, a value that should increase with the changes that were discussed. In the economic area, the forecast this Monday was a cost of R$ 37 billion outside the spending ceiling (the rule that limits the growth of expenses to the variation of inflation). The package also includes a BRL 1,000 truck driver grant and compensation to states for free public transport for the elderly and for the loss in revenue by setting the ICMS tax rate on ethanol at 12%.

Opposition must file request for creation of MEC’s ​​CPI today

The leader of the Opposition in the Senate, Randolfe Rodrigues (Rede-AP), intends to file this Tuesday the request for the creation of the Parliamentary Commission of Inquiry (CPI) to investigate allegations of corruption in the Ministry of Education.

The request for the creation of the collegiate already has 28 signatures – one more than what is required to formalize the request –, but Randolfe works to obtain the support of two or three more senators, which would guarantee a safety margin in case, under pressure government, some parliamentarians decide to withdraw his name.

4. Covid

Last Monday (27), Brazil recorded 147 deaths and 59,944 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 198, an increase of 38% compared to the level of 14 days earlier.

The seven-day moving average of new cases was 54,400, up 36% from the 14-day level.

The number of people fully immunized against Covid in Brazil reached 167,402,950, equivalent to 77.92% of the population.

The number of people who took at least the first dose of vaccines reached 179,037,699 people, which represents 83.34% of the population.

The booster dose was given to 101,158,309 people, or 47.09% of the population.

5. Corporate Radar

PetroRecôncavo (RECV3)

PetroRecôncavo (RECV3) signed a contract with Companhia de Gás do Ceará (Cegás) for the sale of natural gas supplies, through its subsidiaries SPE Miranga and Potiguar E&P. The agreement provides for the supply of 30,000 cubic meters/day of natural gas, effective for one year from the start of operations.

Petrobras (PETR3; PETR4) reported that this Monday (27) it restarted the sale processes of the Abreu e Lima Refinery (RNEST), in Pernambuco, the Presidente Getúlio Vargas Refinery (REPAR), in Paraná, and the Alberto Pasqualini Refinery (REFAP). ), in Rio Grande do Sul, as well as the logistics assets integrated into these refineries.

Locates (RENT3)

Localiza (RENT3) approved the distribution of interest on equity (JCP) in the amount of R$131.6 million, equivalent to R$0.1749 per share.

The rental company also approved a buyback program for up to 50 million shares, about 8.3% of the outstanding shares.

The judicial administrator of RJ da Oi (OIBR3;OIBR4) presented the company’s general list of creditors (QGC) to the Court on Monday. At the end of last March, Judge Fernando Viana, from the 7th Business Court of Rio, had granted an additional 60 working days for the presentation of the document and the deadline for delivery would end this Monday.

With the list of creditors in hand, the judge will be able to prepare the sentence for the conclusion of the company’s judicial reorganization.

(With Estadão, Reuters and Agência Brasil)

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