2024-02-01 12:23:59
© Reuters
Investing.com – Investors are reflecting on monetary policy decisions in Brazil and the United States, with signs of maintaining the pace of cuts and cooling of analysts’ expectations of reductions in fed funds at the March meeting. Still, attention is focused on the corporate results of American companies that will be released today, with big techs such as Apple (NASDAQ:), Amazon (NASDAQ:) and Meta Platforms (NASDAQ:).
The Federal Reserve’s Federal Open Market Committee (Fomc) maintained fed funds at the current level, in the range between 5.25% and 5.5%, as expected. However, the tone of the statement was cautious, as was the Fed chairman’s press conference, which stated that more data is needed for the Fed to have confidence that inflation is on a sustainable downward path.
For Thomas Monteiro, analyst at Investing.com, since the last Fomc meeting, economic data from Americans and comments from members of the monetary authority signaled that the Fed should hurry to cut interest rates. “Still, the market didn’t listen. If things continue like this, the disparity between stock prices and fundamental market conditions is likely to grow to bubble levels.”
Still on the international scene, that of the euro zone remained at a record low of 6.4% in December, according to the Eurostat agency. In the UK, the Bank of England kept interest rates unchanged at 5.25%.
In Brazil, the Monetary Policy Committee () of the Central Bank reduced the rate by 0.5 percentage points to 11.25% per year and indicated that the next meetings tend to follow this line.
“At the first monetary policy meeting, the two new advisors, Paulo Pichetti and Rodrigo Alves, voted in a consistent manner with the other members, without giving specific signals”, points out David Beker, head of economics for Brazil and strategy for Latin America at the Bank of America (NYSE:).
In a note, Julius Baer assessed that the ongoing flexibility cycle in Latin American markets suggests a favorable environment for investments, mentioning the cuts also in Chile of 1 percentage point and in Colombia of 0.25 pp
“The three central bank decisions taken on Wednesday in these countries highlight the ongoing disinflation trend and efforts to support economic growth in the region”, highlights Nenad Dinic, equity strategist at Julius Baer.
At 9:20 am (Brasília time), it rose 0.65%, gained 0.42% and presented a positive change of 0.19%. The value appreciated by 0.17% and the dollar gained 0.26% to R$4.9591.
a reference in the United States, was up 0.87%, at US$76.51, and registered an increase of 0.84% at US$81.23.
Vale’s (NYSE:) ADRs rose 0.80%, to US$13.80, and Petrobras’ (NYSE:) gained 0.70%, to US$17.19.
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News of the day
ICMS — Prices of diesel, gasoline and cooking gas increase by around 12.5% this Thursday due to the increase in the Tax on Circulation of Goods and Services (ICMS) in the states.
MCMV — The government today resumes hiring for the Minha Casa, Minha Vida low-income housing program after five years, highlighted the newspaper O Globo.
Property Sales — The average sales price of residential properties increased by 0.36% in January, according to the FipeZap Index.
— The Producer Price Index (IPP) fell 0.18% in December and closed 2023 down 4.98%, according to the Brazilian Institute of Geography and Statistics (IBGE).
Agenda of the day
Roberto Campos Neto — Participates in the inauguration ceremony of Ricardo Lewandowski as Minister of Justice and Public Security, in Brasília.
Luiz Inácio Lula da Silva — Lewandowski’s inauguration ceremony and solemn opening session of the 2024 judicial year.
Fernando Haddad — Meetings with Fátima Bezerra, governor of Rio Grande do Norte and Fatih Birol, Executive Director of the International Energy Agency (AIE). Participates in Lewandowski’s inauguration.
Corporate News
Grupo Soma (BVMF:) and Arezzo (BVMF:) — The companies confirmed that they are in negotiations for a possible merger, but reported that there is still no agreement signed.
Gol (BVMF:) — The risk rating agency Moody’s downgraded the airline’s rating from “Caa2” to “Ca”, with a negative outlook, with the request for judicial recovery in the USA.
JBS (BVMF:) — Capital Research Global Investors (CRGI) increased its stake from 4.97% to 5.02% of JBS’s total common shares.
Petrobras (BVMF:) — The state-owned oil company confirmed the receipt of R$1.819 billion, which corresponds to additional amounts of compensation for investments made in Sépia and Atapu.
BRB Banco de Brasília (BVMF:) — BRB hired BTG (BVMF:), XP (BVMF:) and Citigroup for a possible share offering.
Irani (BVMF:) — The Board of Directors approved at a meeting the contracting of a financing credit line with the National Bank for Economic and Social Development (BNDES) totaling R$250 million.
Santander (BVMF:) — The bank plans to have two thousand investment advisors by the middle of this year.
Oi (BVMF:) — The company should finalize a new version of the judicial recovery plan by the beginning of this month.
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