New York index futures operate slightly higher, while European stock exchanges have mostly retreated on Tuesday morning (19), with investors attentive to the pace of monetary tightening by the world’s main central banks and an estimate decline in corporate earnings during the second quarter of 2022.
Yesterday (18), a report by Bloomberg pointed out that Apple would reduce hiring and growth spending next year to prepare for a possible economic slowdown, which brought down the main US indexes.
The second quarter earnings season continues this week. Johnson & Johnson and Hasbro will release quarterly results before markets open. But the most awaited numbers of the week are those of technology companies. Netflix kicks off the earnings season for technology companies, releasing its numbers after closing this Tuesday (19). The company itself forecasts to have lost 2 million subscribers in the second quarter of 2022. Analysts consulted by FactSet expect earnings per share of US$ 2.96 and revenues of US$ 8.03 billion.
Monthly homebuilders’ sentiment dropped 12 points to 55, the lowest since the start of the pandemic, according to a report Monday by the National Association of Home Builders. Confidence is under pressure across several economic sectors as the Federal Reserve continues its campaign to raise interest rates to tame high inflation. The Fed’s next policy meeting ends on Wednesday, July 27.
Still, whether the US will experience a recession, and its potential length and depth, are up for debate.
All eyes this week will turn to the European Central Bank’s policy meeting on Thursday, with policymakers having given advance warning of a first increase in 11 years but facing a backdrop of slowing growth amid the war in Ukraine. and subsequent threats to energy. supplies.
In Brazil, the indicator agenda is empty and attention is turned to the Treasury NTN-B auction.
On the corporate side, Vale’s production numbers (VALE3) are released in the second quarter. Citi predicts stability for iron ore, at 76 million tons.
1. World Scholarships
US futures indexes erase parts of the previous session’s losses and operate slightly higher on Tuesday morning, after an Apple report reignited recession worries.
Late in Monday’s trading session, stocks were dragged lower after a Bloomberg story reporting that Apple would cut hiring and growth spending next year to prepare for a possible economic slowdown. The iPhone maker’s shares closed the day down 2.1%.
See the performance of futures markets:
- Dow Jones Futures (USA), +0.52%
- S&P 500 Futures (US), +0.70%
- Nasdaq Future (US), +0.65%
Asia-Pacific markets closed with no clear direction as investors digested the minutes of Australia’s central bank meeting.
The Reserve Bank of Australia released its minutes of its meeting on Tuesday, which showed the board viewed current rates as “well below” the neutral rate, suggesting further increases will be needed to return inflation to target over time.
The Financial Times reported that SoftBank halted plans to list chip designer Arm in London because of political uncertainty as UK SoftBank Group shares rose 1.42%.
- Shanghai SE (China), +0.04%
- Nikkei (Japan), +0.65%
- Hang Seng Index (Hong Kong), -0.89%
- Kospi (South Korea), -0.18%
European markets mostly operate slightly lower on Tuesday, while some markets operate close to stability, with the rally of relief seen in the previous two sessions losing steam.
The euro rose to a nearly two-week high and eurozone government bond yields jumped this morning after Reuters reported, citing a source, that the ECB will consider whether to opt for a 50-point rise. -base as opposed to the 25 basis points already “contracted” by investors.
On the radar of indicators, inflation in the euro zone reached an all-time high in June, up 8.6% year-on-year and 0.8% on a monthly basis.
Political instability remains on the European radar, with the dispute over the leadership of the UK Conservative Party entering its fourth round of ballots among MPs, as the remaining candidates seek to succeed Prime Minister Boris Johnson.
- FTSE 100 (UK), +0.01%
- DAX (Germany), -0.16%
- CAC 40 (France), -0.09%
- FTSE MIB (Italy), +0.25%
Crude oil prices lost steam on Tuesday after rising sharply in the previous session, on concerns that rising crude could fuel a recession that will dampen demand, slightly outweighing continued concerns over tight supply.
Ore prices, on the other hand, fell below US$ 100 in China.
- WTI oil, -0.68% at $101.90 a barrel
- Brent crude, -0.85% at $105.37 a barrel
- Iron ore traded on the Dalian Exchange dropped -0.98% to 656.50 yuan, equivalent to US$97.42
- Bitcoin, -1.53% to $21,900.91 (from 24 hours ago)
The domestic agenda of indicators is empty this Tuesday (19).
9:30 am: Construction begins in June
3:35 pm: Speech by Fed Vice Chair Lael Brainard
5:30 pm: Weekly oil stocks – API
10:15 pm: 5-year loan benchmark rates
3. electoral system
After Bolsonaro made a presentation to ambassadors with a series of attacks on the electoral system and electronic voting machines, the president of the TSE, Minister Edson Fachin, rebutted the accusations made by the president and called the episode “acting”. Without mentioning Bolsonaro’s name, but in a rather harsh speech, which lasted about 40 minutes, Fachin said that it is necessary to “give an end to disinformation and authoritarian populism”.
The TSE president called the president’s presentation an attempt to “hijack communicative action and hijack public opinion and political stability.”
Rodrigo Pacheco also reacted to the new attacks made by Bolsonaro on the Brazilian electoral system in a meeting with ambassadors. Pacheco defended electronic voting machines and stated that the system’s integrity can no longer be questioned.
New Party goes to STF against PEC dos Auxílios
The New Party filed, last Monday, a Direct Action of Unconstitutionality (ADI) with the Federal Supreme Court (STF) questioning Constitutional Amendment 123/2022, arising from the PEC of Auxílios (PEC 1/2022), promulgated by the National Congress in last week. The party calls for the suspension of the effects of the measure at least until the end of the electoral process.
The text recognized a state of emergency, “resulting from the extraordinary and unpredictable rise in the prices of oil, fuels and their derivatives and the resulting social impacts”, to create social programs and expand benefits that already exist less than three months before the elections, removing restrictions. imposed by the Law on Elections and by the tax rules in force.
Last Monday (18), Brazil recorded 143 deaths and 22,855 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 248, an increase of 9% compared to the level of 14 days earlier.
The moving average of new cases in seven days was 54,258, which represents a decrease of 6% compared to the level of 14 days before.
The number of people fully immunized against Covid in Brazil reached 168,327,951, equivalent to 78.35% of the population.
The number of people who took at least the first dose of vaccines reached 179,447,243 people, which represents 83.53% of the population.
The booster dose was given to 98,498,426 people, or 45.85% of the population.
The states of SP, RJ, MA, TO and AP do not separate the numbers of third and fourth doses. For this reason, the booster percentages may be inflated.
5. Corporate Radar
The state-owned company’s Board of Directors, in a session with the participation only of its members who were not nominated for a new election, the Board fully validated the analyzes of the Eligibility Committee (CELEG) in relation to the candidates nominated by the controlling shareholder and by the minority shareholders to the company’s CA.
The Board also resolved, with the participation of all its members, by majority, on the convening of an Extraordinary General Meeting, to be held on August 19. “The call notice and the manual for participation in the Meeting will be released to the market tomorrow”, he concluded.
EcoRodovias (ECOR3) informed that its subsidiary Ecovias do Araguaia obtained long-term credit lines with the National Bank for Economic and Social Development (BNDES) and Banco da Amazônia (BASA), in the total amount of R$ 4.2 billion and with maturity in September 2051.
Hermes Pardini (PARD3) and Fleury (FLRY3)
The laboratory network Hermes Pardini (PARD3) and Fleury (FLRY3) scheduled an extraordinary general meeting for August 18 to deliberate on the merger.
(With Estadão, Reuters and Agência Brasil)
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