2024-09-03 11:01:26
By Scott Kanowsky and Jessica Bahia Melo
Investing.com — Stock futures on Wall Street point to a bearish start to trading after a volatile trading month in August. On the political stage, Kamala Harris declared that she would try to block a proposed acquisition of US Steel by Japan’s Nippon Steel (TYO:) during a campaign event in the state of Pennsylvania.
In addition, electric vehicle maker Tesla is planning a new six-seater version of its Model Y in China to stimulate demand in this important automotive market.
In Brazil, economic activity data and the consequences of the ban on X, formerly known as Twitter, are expected.
CHECK OUT: Investing.com’s Economic Calendar
1. Harris opposes the proposed agreement between US Steel and Nippon Steel
US Democratic presidential candidate Kamala Harris has indicated she would block the proposed US$14.9 billion acquisition of US Steel (NYSE: ) by Japan’s Nippon Steel. Speaking to a crowd of supporters in Pennsylvania, a key state for the 2024 US presidential election, Harris called US Steel a “historic American company” that must “remain American owned and operated by Americans.”
The comments are similar to objections previously raised by US President Joe Biden. Harris currently serves as Biden’s vice president.
Harris’ Republican opponent, Donald Trump, also spoke out against the deal, vowing to block it.
The bipartisan opposition to the deal was met with fierce opposition from the United Steelworkers union, which asked lawmakers to examine whether the deal would harm US national security interests and US Steel’s domestic workforce . US Steel and Nippon Steel continued to support the proposal, saying it would be beneficial to the US steel sector.
US stock futures showed lower on Tuesday, with Wall Street set to start a new month of trading after a rollercoaster August.
At 7:55 am (Brazilian time), the contract had fallen 0.49%, lost 0.47% and lost 0.60%.
Major US media outlets were closed on Monday for the Labor Day holiday. They ended Friday’s trading session higher, ending August on a positive note despite a sharp drop at the start of the month, fueled in part by concerns about a possible US recession. The benchmark index fell more than 7% but managed to rise 2.3% in August – the fourth consecutive month of gains. The 30-stock index and the high-tech index also gained 1.8% and 0.7% in the period, respectively.
WATCH: US stock prices in pre-market
2. Tesla is planning Model Y in six locations in China – Reuters
Tesla (NASDAQ: ) is set to produce a new six-seat version of its Model Y vehicle, which is expected to launch in China in late 2025, Reuters reported on Tuesday.
The move is part of the company’s strategy to update its best-selling electric vehicle (EV) and increase the Model Y’s appeal amid growing competition from domestic EV makers in China.
Tesla has informed its suppliers of the need to prepare for a significant increase in Model Y production at its Shanghai factory, according to the report.
Although specific details of how Tesla plans to increase production have not been released, the Shanghai factory is currently awaiting approval for an expansion on a 70-hectare plot of former farmland nearby.
Tesla has already achieved a 6% annual increase in domestic and international Model 3 deliveries in the first half of the year, after introducing an updated version last year. August was Tesla’s best month in China so far this year, with sales up 37% compared to July in the world’s second largest economy.
ALSO READ: Find out which are the best shares to invest in.
3. The President of Brazil supports the ban on X
Brazilian President Luiz Inácio Lula da Silva supported the controversial decision of the Federal Supreme Court to uphold the ban on the social media platform of Elon Musk X. The left-wing leader told CNN Brasil “the world is not obligated to ideology in far right to tolerate Musk because he is rich.”
On Monday, a panel of judges from Brazil’s top court unanimously supported the ban on X. Federal Supreme Court judge Alexandre de Moraes initiated the shutdown over the weekend, saying the platform did not meet hate speech and requirements another.
Musk responded on X, saying Moraes was a “dictator”. Billionaire Bill Ackman also warned that the ban could make Brazil, the largest economy in South America, “uninvestable.”
Investors also raised concerns about Moraes’ separate decision to freeze Brazilian bank accounts related to Musk’s satellite broadband company Starlink. De Moraes ordered the action last week after X failed to pay the fines imposed on him for failing to comply with court orders.
NEXT: Commodity quotes
4. Oil retreats
Oil prices traded lower on Tuesday as investors digested slow economic growth in China, the world’s largest oil importer, as well as disruptions to production and exports from Libya.
At 7:56 am, the contract fell 2.46% to $75.61 a barrel, while WTI futures lost 1.85% to $72.19 a barrel after the contract was not settled on Monday due to the US Labor Day holiday.
China’s purchasing managers’ index fell to a six-month low in August, according to data released over the weekend, pointing to a likely weakening in demand from the world’s biggest crude oil importer.
However, oil exports were halted at major ports in OPEC member Libya on Monday and production was cut across the country, supporting oil prices.
5. 2nd quarter GDP in Brazil
Investors are waiting for data on the Gross Domestic Product () for the second quarter of this year, which will be released this Tuesday by the Brazilian Institute of Geography and Statistics (IBGE). Consensus is expected for an increase of 0.9%, above the 0.8% recorded in the first quarter. The activities are expected to be driven by household consumption and investment in mass fixed capital formation, with strong activity even with the effects of the floods in Rio Grande do Sul.
The positive outlook reflects high consumption, “driven by a heated job market and real income growth, factors that support this strong pace of growth”, according to Leonardo Costa, economist at ASA.
“This healthy composition is possible due to an environment with a tight labor market, real wage gains by workers and slightly easier credit conditions”, highlighted economists at Bank of America (NYSE:) in a note.
With a stronger economy in the first half of the year, there is a tendency to slow down in the second, according to Itaú (BVMF:). “For the second half of the year we expect a slowdown in GDP to average growth of 0.2% at the margin, given lower fiscal and monetary intelligence. If our estimates are confirmed, growth will be 2.5% for the year.”
At 7:57 am (Brazilian time), the ETF EWZ (NYSE: ) lost 1.57% in premarket.
#date #main #market #news #Tuesday #Investing.com