Ibovespa futures pull back after ADRs drop the day before, as investors wait for Fed and PEC in Precario

São Paulo – The future of Ibovespa from the working holiday is down in the first trading this Wednesday (third). Although the Brazilian stock market has taken off in recent weeks from abroad, today’s investors have good reasons to watch the United States. The meeting of the Federal Open Market Committee, and the Board of Directors of the US Central Bank ends, and this month’s meeting is supposed to determine the outcome of the stimulus program for the US economy.

In practice, this stimulus comes from buying $120 billion a month in government bonds and interest rates very close to zero. A shift in this program could change the investment dynamics, since with rising interest rates, investors tend to look for safer and more profitable options in the US, leaving emerging markets like Brazil.

Investors are also seeking feedback on inflation, at its highest level in 30 years, and indications of when the institution intends to raise interest rates.

Earlier, the minutes of the last meeting of the Monetary Policy Committee (Copom) were released, which raised the base rate (Selic) by 1.5 percentage points at the last meeting. The document shows that the committee evaluated scenarios with greater adjustment rates, but came to the conclusion that with the approved pace, but taking into account a different final price, it is possible to reach the inflation target in 2022.

Financial risks remain on the radar and this day could prove crucial to the government’s goal of making adjustments to the public spending cap. Parliamentarians hope to be able to vote in the plenary session of the Chamber of Deputies in the PEC dos Precatórios, a proposal that limits the repayment of the union’s judicial debts and makes room in the budget to accommodate Auxílio Brasil, an alternative program to Bolsa Família. Since the government wants to adjust the entitlement, so that families receive at least R$400, the PEC will make it possible to pay for the re-adjusted value without creating unusual expenses.

At 9:20 a.m. (Brazilian time), Ibovespa futures due in December 2021 were down 0.64% to 105305 points.

On the previous day (2), on B3 closed due to the All Souls Day holiday, the main index of ADRs (Shares of Non-US Companies traded in New York) in Brazil, the Dow Jones Brazil Titans 20 ADR Index, closed by 2.16%. The EWZ, the main Brazilian ETF traded in the US market, which is similar to the MSCI Brazil index, also posted a -1.81% depreciation in the currency.

Read: Ore remains below $100 as steel is pressed in China

The dollar opened slightly higher and rose 0.13% to R$5.676 when buying and R$5.678 for selling. Dollar futures for December 2021 fell 0.10% to R$5.708.

In the futures market, the DI for January 2023 rose four basis points to 12.39%. DI for January 2025 rose three basis points to 12.62%; The DI for January 2027 was positive by 2 basis points at 12.59%.

In the United States, in addition to diminishingInvestors should also pass on data on job creation in the private sector in October. This number was 571,000, while expectations indicated the creation of 400,000 vacancies, and therefore it is much higher than expectations. While the Federal Reserve is silent, New York index futures are sideways.

Dow futures fell 0.15%. S&P 500 futures saw a slight decrease of 0.07%; Nasdaq futures rose 0.14%. In Europe, the Stoxx 600, which brings together companies from 17 European countries in key sectors, rose slightly by 0.13%.

Asian bourses also experienced mixed performance this Wednesday, as investors paid close attention to the results of the Federal Reserve’s meeting, as it scored 53.8 points in October, compared to 53.4 in September.

Over the weekend, China’s official non-manufacturing PMI for October was released and scored 52.4 points, down from 53.2 points in September. Any reading above 50 points indicates expansion; Below, undo.

corporate radar

The release of season results is still crowded, with the focus on Itaú (ITUB4), plus CSN (CSNA3), PetroRio (PRIO3), Ultrapar (UGPA3), among others.

Pan Bank (BPAN4)

O Pan Bank (BPAN4) recorded a net income of R$191 million in the third quarter of 2021 (Q3 of 21). The result represents a 12% growth compared to the same period in 2020.

According to the bank, the main drivers of performance were strong financial margin, cost of credit under control and growing revenue from services provided.

Annual return on average equity was 13.6% in Q321, compared to a return of 13.2% in the same period last year (Q3 2020).

espadrille (ALPA4)

The Dass Group, owner of the Fila and Umbro brands, has submitted an offer to acquire 60% of Osklen, a footwear and clothing brand belonging to Alpargatas (ALPA4).

The proposal was revealed in the intrinsic fact of the publicly owned company. According to the document, it consists of a fixed part in the amount of 300 million Brazilian riyals, to be paid in three installments, in addition to a variable part in the amount of up to 100 million Brazilian riyals, provided that certain goals are achieved during the period. 2022 and 2023.

Payment will be made within four years of receipt of the offer, with due cash correction, in proportion to the company’s share.

root (RAIZ4)

Raízen (RAIZ4) has concluded the acquisition of 50% of Barcosy Rodados (B&R), for $121.9 million, of which $31.9 million has been paid on this date, and $90 million will be paid in 5 annual installments.

The company has signed a contract regulating the right to use the B&R Shell brand and a shareholder agreement regulating the relationship between the parties as shareholders of B&R.

The closing of the deal marks Raízen’s entry into the services and marketing market in Paraguay with 340 retail outlets, complementing the company’s operating platform in South America.

Americans (AMER3)

Americanas (AMER3) and Lojas Americanas reported that IF Capital, a subsidiary of Americanas, whose mission is to invest in start-ups, concluded on Monday (1) the acquisition of 100% of the shares of Natural da Terra.

According to a statement, Natural da Terra has a network of 77 stores in Rio de Janeiro, Sao Paulo, Minas Gerais and Espiritu Santo. Online network sales account for 16% of the total.

allies (ALLD3)

Allied Corporation (ALLD3) has concluded the acquisition of the entire capital of Brused, a platform for buying and selling used electronics.

The value of the transaction was not disclosed.

Since the second half of 2020, with the launch of the iPhone Pra Semper programme, in partnership with Banco Itaú and Apple, Allied has entered this market by committing to purchasing devices that are returned by customers at the end of their cycle in the program.

Mater D Hospital (MATD3)

Mater Dei Hospital (MATD3) has concluded the acquisition, through its subsidiary RMDSPD Participações, of a 50.1% stake in the share capital of A3 Data Consultoria.

CM Hospital (VVEO3)

CM Hospitalar (VVEO3) concluded the entire FW purchase after previous conditions, such as the CADE Agreement, had been met.

Located in Blumenau, Santa Catarina, FW is a company dedicated to the field of personal hygiene, specializing in the manufacture of wipes and wet towels.

CM Hospitalar (VVEO3) also reported that the acquisition of 100% of Tecno4 and Pointmed has been completed, following compliance with the previous terms.

phone (VIVT3)

The Board of Directors of Telefônica (VIVT3) has approved the sale of part of the shares owned and issued by the subsidiary “IoTCo Brasil”, which represents 0.02% of the share capital of IoTCo Brasil, to TI & BDT, an indirect subsidiary of Telefónica, in the amount of 18.99 million Brazilian Real.

As a result of this transaction, Telefônica (VIVT3) holds 50.01% of the share capital of IoTCo Brasil and 49.99% of TI & BDT.

Omega (OMGE3)

Omega Corporation (OMGE3) has informed that only infringing shareholders who are found to hold ordinary shares issued by the corporation between September 24, 2021 can exercise the right of withdrawal.

The payment amount per share to be paid to the offending shareholder exercising his drawing rights will be R$19,562 per share.

The period for exercising the right to withdraw will be 30 days from the date of publication of the ESM meeting minutes, i.e. November 4, 2021.

The refund will be made within 90 days after the end of the period of exercising the right of withdrawal.

(with Reuters and Estadão content)

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