World stocks rise ahead of US inflation; IPCA, positive news about Covid in China and more market affairs today

U.S. futures and European stocks rise, despite the closing of Asian markets this Wednesday (11), with investors attentive to the U.S. consumer price index (CPI) for April, it should be slightly below 8 .5% from March, which may signal that inflation has reached its peak.

Rising prices are a major focus of the markets’ attention, particularly as the Federal Reserve (Fed) is raising interest rates and cutting its balance sheet to deal with inflation. In addition, investors continue to monitor the ongoing conflict in Ukraine and the blockades in China.

In China, the April producer price index rose 8% from a year earlier, above expectations for a 7.7% rise by analysts polled by Reuters. Consumer inflation also rose more than expected. The consumer price index rose 2.1% year on year, above expectations for a 1.8% gain by analysts in a Reuters poll.

On the other hand, positive news of Covid containment in Shanghai encouraged investors there. The Shanghai government announced on Wednesday that eight districts had “contained the virus at the community level”.

Returning to the US, Toyota Motors, Walt Disney and Beyond Meat release their results for the first quarter of this year.

Here, the highlight is the release of the Consumer Price Index (IPCA) for April. The Refinitiv projection is up 1% compared to March and 12.07% year-on-year.

The balance sheet season highlights Banco do Brasil (BBAS3), Braskem (BRKM5), Copel (CPLE6) and JBS (JBSS3).

Check out more highlights:

1. World Scholarships

U.S

US index futures operate higher ahead of the release of inflation data. The bullish move comes after the Dow fell for a fourth straight day on Tuesday in volatile trading, alternating between gains and losses. The S&P 500 rose 0.25% and the Nasdaq Composite gained about 1%.

See the performance of futures markets:

  • Dow Jones Futures (USA), +0.80%
  • S&P 500 Futures (US), +0.98%
  • Nasdaq Future (US), +1.23%

Asia

Asian markets mostly closed in the blue. Highlighted is the increased market sentiment with Chinese stocks for positive developments in the Covid situation.

The Shanghai government announced on Wednesday that eight districts had “contained the virus at the community level”. Meanwhile, the capital Beijing also reported about half the number of new daily cases.

Among the inflation data released on Wednesday, China’s producer price index for April rose 8% from a year earlier, above expectations for a 7.7% rise by analysts in a Reuters poll. Consumer inflation also rose more than expected. The consumer price index rose 2.1% year-on-year, above expectations of a 1.8% rise by analysts in a Reuters poll.

“China will be struggling with a lot of economic issues, including supply chain and inflation factors, but I am a little less concerned about the supply chain than I was maybe six months ago,” said Andrew Collier, managing director at Orient Capital Research. , for CNBC.

  • Shanghai SE (China), +0.75%
  • Nikkei (Japan), +0.18%
  • Hang Seng Index (Hong Kong), +0.97%
  • Kospi (South Korea), -0.17%

Europe

European markets rise en bloc as investors await US inflation data.

The cautiously positive morning in Europe came after busy trading sessions in the region and in markets further afield. Recent market volatility has been fueled by investor concerns about rising interest rates and question marks over how aggressively the Federal Reserve will act to contain rising inflation.

Among euro data, Germany’s annual consumer inflation rate (CPI) accelerated to 7.4% in April from 7.3% in March, reaching the highest level since 1981, according to final data. published this Wednesday, 11th, by Destatis, the country’s statistics agency. On a monthly basis, the German CPI rose 0.8% in April. The numbers came in line with the expectations of analysts polled by The Wall Street Journal and confirmed preliminary estimates.

  • FTSE 100 (UK), +1.21%
  • DAX (Germany), +0.84%
  • CAC 40 (France), +1.95%
  • FTSE MIB (Italy), +1.66%

commodities

Oil prices traded up 3% on Wednesday, after falling 9% in the previous two sessions, on supply concerns as the European Union worked to rally support for a ban on Russian oil and major Producers have warned that they may struggle to fill the gap when demand improves.

The ore futures contract traded in Dalian recorded a rise of more than 5%, after falling for three consecutive sessions, with increased expectations of a recovery in demand at the mills. “The impact (of the pandemic) in areas like Tangshan is waning and the transport of raw materials has resumed,” analysts at Haitong Futures said in a note, adding that daily cast iron production had recovered from previous weeks.

  • WTI Oil, +3.01%, at $102.77 a barrel
  • Brent Oil, +3.05%, at $105.58 a barrel
  • Iron ore traded on the Dalian Exchange rose 5.32% to 821.00 yuan, equivalent to US$122.15

Bitcoin

Bitcoin, -2.14% to $31,092.77 (from 24 hours ago)

2. Schedule

In the week following the decision by the Central Bank of the United States to raise the country’s interest rates by 50 basis points, attention is now turned to the country’s new inflation data. Today (11), the consumer price index (CPI) comes out, and the Refinitiv consensus is waiting for a positive monthly variation of 0.2% in April in the monthly comparison.

In Brazil, the Consumer Price Index (IPCA) is released for the month of April. It is worth remembering that last month’s inflation preview (IPCA-15) advanced 1.73%, the highest rate for the period in 27 years. For the full month, Itaú forecasts a rise of 1.04%, taking 12-month inflation to 12.11% – for the bank’s analysts, it will be the peak of inflation in 2022. The Refinitiv consensus of economists projects a rise of 1% on a monthly basis and 12.07% on an annual basis.

“The reading will be pressured again by administered prices, mainly reflecting the Petrobras adjustment announced in mid-March. Other regulated items, such as pharmaceuticals, will accelerate this reading. On the other hand, electricity will show some deflation, reflecting the change to the green tariff flag in mid-April”, highlights the analysis by Itaú.

Brazil

9:00 am: April IPCA, with a Refinitiv forecast of a 1% increase compared to March and a 12.07% increase on an annual basis

USA

9:30 a.m.: Monthly consumer price index, consensus up 0.2%, yoy up 8.1%

11:30 am: Weekly EIA oil inventories change

3 pm: Federal budget balance sheet

3. Change in command of the Ministry of Mines and Energy

President Jair Bolsonaro changed the command of the Ministry of Mines and Energy this Wednesday (11). Bento Albuquerque left and Alfredo Sachsida was appointed in his place.

The move comes amid Bolsonaro’s criticism of Petrobras’ pricing policy.

STF will jointly investigate Bolsonaro’s attacks on the polls with digital militias

Minister Alexandre de Moraes, of the Federal Supreme Court (STF), determined that the investigations into the attacks that President Jair Bolsonaro made on the electronic voting machines in a live last year be carried out together with the investigation that investigates the alleged action of a militia. digital against democracy.

Lira indicated more than BRL 350 million in secret budget amendments

The mayor, Arthur Lira (PP-AL), indicated at least R$ 357.4 million in secret budget amendments to municipalities in Alagoas in the last two years. The amount is equivalent to almost 20 times the amount that deputies were entitled to suggest in the individual tax amendments of 2021, whose limit was R$ 16.2 million, reports O Globo.

Most of the funds were requested from electoral strongholds in Lira, among them the municipality of Barra de São Miguel, whose mayor is his father, Benedito de Lira (PP). The information is contained in letters sent by Lira to the president of Congress, Rodrigo Pacheco (PSD-MG), who in turn sent them to the STF.

Senate approves increase in election spending by governments

The Senate approved this Tuesday (10) the Bill (PL) 4.059/2021, which changes the limit on government advertising spending in election years. The text proposes a change in the calculation method to determine how much federal, state and municipal governments can spend on advertising in the first half of election years. The project will allow the federal government an increase of R$ 25 million in these expenses later this year. The text goes to presidential sanction.

4. Covid

Last Tuesday (10), Brazil recorded 195 deaths and 20,589 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 97, a decrease of 2% compared to the level of 14 days before.

The seven-day moving average of new cases was 16,053, which represents an increase of 29% compared to the level of 14 days earlier.

The number of people fully immunized against Covid in Brazil reached 164,787,605, equivalent to 76.71% of the population.

The number of people who took at least the first dose of vaccines reached 177,534,810 people, which represents 82.64% of the population.

The booster dose was given to 88,553,917 people, or 41.22% of the population.

5. Corporate Radar

The corporate earnings season continues with Agribrasil (GRAO3), Aliansce Sonae (ALSO3), Allpark Estapar (ALPK3), Banco do Brasil (BBAS3), Banco Pine (PINE4), Boa Vista (BOAS3), Braskem (BRKM5), Copel ( CPLE6), D1000 (DMVF3), Dimed (PNVL3), Enjoei (ENJU3), Equatorial (EQTL3), Fras-Le (FRAS3), JBS (JBSS3), Lavvi (LAVV3), Light (LIGT3), Lojas Marisa (AMAR3) , Mahle Metal Leve (LEVE3) and Mater Dei (MATD3).

Mills (MILS3), Minerva (BEEF3), Moura Dubeux (MDNE3), Multilaser (MLAS3), Positivo (POSI3), Profarma (PFRM3), RNI (RDNI3), Rossi (RSID3), Santos Brasil (STBP3), SLC Agrícola ( SLCE3), SulaAmerica (SULA11), Tenda (TEND3), Ultrapar (UGPA3), Unifique (FIQE3) and Vittia (VITT3) also release their numbers.

Petrobras (PETR3;PETR4)

The state-owned company will pay supplementary dividends next Monday. The earnings refer to the year 2021, based on the shareholding position as of 04/13/2022, as per the statement released on the same date. The value per share of dividends will be adjusted by the Selic rate from December 31, 2021 to May 16, 2022, reaching a total amount of R$ 2.97 per share.

For holders of American Depositary Receipts (ADRs) traded on the New York Stock Exchange (NYSE), payment will occur as of May 23, 2022 through JP Morgan Chase, the depositary bank for Petrobras ADRs.

Telephone (VIVT3)

Telefônica (VIVT3) profited R$750 million in the 1st quarter, down 20.4% year-on-year.

Adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) grew 1.3% in 1Q22, totaling R$4.5 billion.

Qualicorp (QUAL3)

Qualicorp (QUAL3) saw net income decline 35.3% in the 1st quarter of 2022, to R$74 million.

Adjusted Ebitda was R$ 252.8 million in the analyzed quarter, which represents a drop of 9.2% compared to R$ 278.3 million in the same period a year ago. The Ebitda margin dropped 2.9 percentage points to 50.3%.

CVC (CVCB3)

CVC (CVCB3) recorded a loss of R$ 166.8 million in the 1st quarter, up 104.7% year-on-year.

Earnings before interest, taxes, depreciation and amortization (Ebitda) was positive by R$33.3 million in 1Q22, compared to a negative result of R$56.4 million.

Blue (BLUE4)

Azul (AZUL4) recorded 84.0% growth in consolidated passenger demand (RPK) in April compared to April 2021. Demand rose 30.9% in the first four months of the year.

The offer of seats (ASK) increased 78.8% in the same comparison. The occupancy rate rose 2.3 pp to 79.8%.

(With Estadão, Reuters and Agência Brasil)

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