5 Hot Topics for Investors in Brazil This Week

a IPCA And IGP-DI will test bets on a less extended cycle of monetary tightening this week. The flow continues to put the burden on dollarwhich tests the lowest levels below 4.70 Brazilian Real.

Economic Affairs Committee in Senate A meeting is scheduled for the fifth Tuesday to discuss two government candidates for the Central Bank Board of Directors and one for the Administrative Board for Economic Defense.

Outside, a few minutes from the Federal Reserve and the European Central Bank are moving expectations on interest rates. Oil fluctuates amid negotiations between Russia and Ukraine after falling as stocks are freed United States of America.

In politics, research alerts PT and will be monitored after movements in the third edition.

Inflation and interest

a IPCA From March it will be released on the 8th, two days after IGP-DI. Previous inflation data, such as the IPCA-15, IGP-M, and IPC-S, beat estimates.

However, future interest rates have fallen, favored by a drop in the dollar and oil, since Central Bank President Roberto Campos Neto confirmed that Cilic may have a recent high in May.

The premium for the additional rally in June fell below 40 pips.

The agenda begins Monday with BC’s Focus Survey. Other data, such as external accounts and consolidated financial results, also rely on the Basel Accord, which has been postponing disclosures due to the strike.

Dollar Test BRL 4.70

The market continues to follow the flow of exchange rates, which helps dollar It fell to its lowest level in more than two years, to test the psychological mark of 4.70 Brazilian real on Friday.

Even with the central bank signaling the end of monetary tightening is approaching, analysts consider the trend to 12.75% already high enough to attract foreign capital.

In addition, commodities remain at a high level even with the excesses caused by the war, which favors the flow of dollars into the trade chain.

The dollar closed the first quarter with the biggest drop since 2009.

Prepared from Fomc and Oil

You United States of America You have a busy schedule again next week, with the focus on the FOMC meeting minutes, on Day 6, as well as speeches by several Fed leaders, such as Lyle Brainard, James Bullard and Rafael Bostik.

The outlook for global rates could still be influenced by a statement from Andrew Bailey, of the Bank of England, on day four, and ECB meeting minutes on day seven.

The index table includes orders from US factories and Caixin PMI in China. After pulling back on Thursday with the US Reserve release plan, oila You must continue to follow the war between Russia and Ukraine.

Talks between the two countries resumed on Friday via video link. Russian Foreign Minister Sergei Lavrov said that Moscow is preparing to respond to the Ukraine.

In the United States, Kitangi Brown-Jackson is set to become the first black woman on the Supreme Court.

Elections and polls

Political moves involving the third method have kept the electoral framework undetermined at the center and could reinforce the polarization between Lula and Jair BolsonaroAs Folha says, citing the assessment of the two leaders’ allies in opinion polls.

According to Valor, the trend is that opponents of Bolsonaro and laughing loudlyAnd in the center-right camp, he will lose two to three months in negotiations and courage until the party conventions in the middle of the year.

The market should evaluate opinion polls to check whether the fact that Sergio Moro says he is, for the time being, withdrawing from his candidacy, could bolster other names from the Third Way or President Bolsonaro.

gatherings

The Marfrig (MRFG3) gathers the shareholders in the Ordinary General Assembly meeting to discuss the allocation of net income for the year 2021 on April 8. The Odontobrev (ODPV3) gathers AGOE shareholders to evaluate the stock split proposal on Day 4.

EDP-Energias do Brasil (ENBR3) Shareholders meet on the fifth of August.

The Fras-Le Board of Directors has approved the initial offering of 52.5 million shares, which can be increased by up to 10.7 million shares in the hands of shareholders in accordance with the demand seen in the bookbuilding process.

Based on the closing price on March 29, the bid could raise R$902.8 million in additional lots. The determination of the share price offered by Fras-Le will be on the seventh day.