April ends with the markets focused on the monetary policy meeting of the Federal Reserve (Fed, the central bank of the United States), which starts today and ends tomorrow, whose majority bet is to maintain the basic interest rate at the current level. The release of the US PMI in April from ISM/Chicago and Amazon’s quarterly results are also on the radar. In Brazil, the focus before the Labor Day holiday, tomorrow, is employment data – PNAD for the quarter up to March and Caged from last month – and Santander’s balance sheet.
Exterior
The tone is one of moderation in assets this morning on the last day of the month, amid a range of balance sheets and growth results measured by Gross Domestic Product (GDP) in Europe. There is a certain amount of waiting for investors for the start of the American monetary policy meeting. The expectation is that tomorrow interest rates from the Federal Reserve (Fed, the central bank of the United States) will be maintained at the current level of 5.25% to 5.50%, but there will be some sign of when they will start to fall, either through from the Fed’s statement, or from President Jerome Powell’s interview.
Another point of attention is corporate results. Today, after the markets close, Amazon will come out. Yesterday, the New York stock exchanges closed slightly higher, supported by Tesla’s earnings and balance sheets. Today, North American stock futures indexes fall slightly and Treasury interest rates are trending upwards. Oil also rises moderately and the dollar advances. European stock markets mostly fall, after HSBC reported a drop in profit and revenue in the first quarter and Santander reported an increase in revenue and profit. The Spanish bank’s profit, however, fell short of expectations. Stock markets in Asia closed with no single direction after divergent Chinese industrial PMIS. In Japan, central bank data suggests strong government intervention in favor of the yen this Monday.
Brazil
The fall of most stock indices abroad could instigate an adjustment in the Ibovespa, which yesterday rose and recovered the 127 thousand points mark, closing at 127,351.79 points. Therefore, there is a danger of ending April with a slight decline, which would be the second month of decline in a row. The ADRs of Vale and Petrobras, whose shares advanced yesterday on B3, fall this morning in the New York pre-market. In the case of the mining company, attention continues to unfold on the proposed agreement presented yesterday by Vale and BHP to close the Mariana (MG) case. The state-owned company reported last night the production and sales report for the first quarter of the year, with an increase in production and a decline in fuel sales. Another focus is Santander Brasil’s balance sheet. The rise in Treasury yields could weigh on future interest rates, which are still monitoring employment data from Pnad Contínua and Caged. In exchange rates, the strength of the dollar abroad can influence the real.
*State Agency
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