Global markets operated cautiously on Thursday morning (10) awaiting the release of consumer inflation data in the United States. In Brazil, investors digest data from the service sector, released earlier by the IBGE (Brazilian Institute of Geography and Statistics).
Starting abroad, US futures indices operate slightly lower. Investors are cautious waiting for the Consumer Price Index (CPI) which came out at 10:30 am. The CPI is the indicator most watched by the US central bank (FED, its acronym in English) to make decisions about interest rates.
Yesterday, the good results of companies once again boosted the indices, especially Disney, which rose 9% after the strong balance.
In addition to interest and balance sheets, Ohmresearch assesses that the situation in Ukraine is the main trigger for the market today. If some solution to the problem is devised, it could bring relief to inflation and raise growth forecasts.
But if the conflict continues, oil could hit $120, putting the world in a state of stagflation — high inflation and low growth.
In Europe, the indices operate between highs and lows following New York. There, interest markets are pricing in a first rate hike from the European Central Bank (ECB) in June. This comes after ECB President Christine Lagarde said last week that a rate hike in 2022 is a possibility.
In Asia, stocks closed mostly higher, following yesterday’s recovery in the United States. Evergrande announced that it will deliver 600,000 apartments in 2022 and helped boost rates.
Brazil
In Brazil, the sector and services indices were released by the IBGE this morning. The sector rose 1.4% in December, slightly above market expectations, which had expected a 0.9% advance. With this result, the sector ends 2021 with a growth of almost 11%, the highest since the beginning of the history series, in 2012.
The market should improve expectations of closed GDP (Gross Domestic Product) for the fourth quarter of 2021 and also for the year 2021 closed. Necton Investimentos highlights that the strong recovery of the sectors that suffered greatly from the pandemic was evident in the results, as is the case in the tourism sector.
On the other hand, MB Associados highlights that there are challenges ahead, with the Ômicron variant operating at the beginning of 2022 and also with high interest rates and inflation.
Yesterday, investors priced in more interest rate hikes in the short term, with inflation data showing a rise spread across several items. The speech of the director of the Central Bank (BC), who said that the cycle of high interest rates will extend for a couple of meetings, at least.
The high interest rates in the country continue to attract foreign funds and help to reduce the dollar’s price, which yesterday closed at R$ 5.22, the lowest level in 5 months.
Among the companies, Cade (Administrative Council for Economic Defense) approved, with restrictions, the purchase of Oi Móvel by Claro, Tim and Vivo.
After Bradesco’s results dropped bank shares today, the market turns its attention to Itaú’s balance sheet, after the stock market closed.
The Ibovespa has a slight increase of 0.3% operating at 112,974 points. The dollar is down 0.54%, being quoted at R$5.22 and the S&P 500 futures has a slight drop of 0.06%.
Agenda of the Day
In Brazil, in addition to service data, the balance sheet season continues with Itaú and Multiplan after the stock market closes.
Outside, attention is focused on the speech of members of the ECB and England. This Thursday morning, OPEC (Organization of Petroleum Exporting Countries) still has a decision. In the US, in addition to the CPI, unemployment insurance data, tax results must be disclosed. Among the balances, highlight for Coca-Cola and Pepsico.
Source: CNN Brasil
