U.S. GDP, Petrobras, CVC, BR Distribuidora: what will affect today’s Brazilian financial market

RIO DE JANEIRO, BRAZIL – A cautious tone prevails in international markets on Thursday morning (26), as investors are still waiting for Federal Reserve (Fed) Chairman Jerome Powell’s speech at the Jackson Hole Symposium, scheduled for Friday (27).

Powell is expected to provide more details on how the Fed will reduce its monthly stimulus of US$120 billion in asset purchases, known as “tapering.”

In the United States, where stock markets have reached record highs, the futures market S&P 500 moves between slight declines and highs, while the Dow Jones and Nasdaq follow the declines in the European market. In the old continent, the Stoxx 600 falls by 0.41%, with the German stock market being the highlight with losses of 0.7%.

In addition to waiting for Powell’s speech, a series of data on the American economy is on the radar of international markets, which will be released this morning. The most important figure will be the second-quarter GDP, which will undergo the first of two revisions.

In its first preview, U.S. GDP growth disappointed investors with a reading of 6.5%, while the market had expected quarterly growth of 8.5%. Thursday’s release is expected to show a slight upward revision from 6.5% to 6.7%.

Investors will also be watching for weekly U.S. unemployment insurance claims, expected to come in at 350,000. Last week’s number was 348,000, the lowest level since the pandemic first impacted the U.S. labor market in March 2020.

COST FOR DEVELOPERS

In Brazil, the Getulio Vargas Foundation will release today the Construction Survey and the INCC, the National Construction Cost Index, both referring to the current month of August.

It will be a new thermometer of activity levels and expectations in one of the busiest sectors of the economy, with indications for investors in companies in the sector, such as property developers.

In the case of the INCC, which reached a high of 17.35% in the 12 months to July, this indicator shows the pressure on the costs of companies, which puts pressure on the profit margins of companies in the sector.

PETROBRAS

Petrobras (PETR3/PETR4) continued its divestment of areas considered non-strategic with the sale of refineries. Last night (25), the company advised it had sold the REMAN refinery for US$189.5 million to Ream Participações, owners of Atem Distribuidora de Petróleo. REMAN was the second refinery for which a purchase agreement was signed.

Petrobras also tried to sell the Abreu e Lima refinery in Pernambuco, but interested parties did not submit offers, according to the company. Petrobras said it is finalizing the sales process to consider the “next steps.”

BR Distribuidora (BRDT3) said it would pay the second tranche of the 2020 dividend totaling 721.7 million reais, or 0.62 real per share.

The renowned management company Opportunity has acquired 15.2% of the shares of CVC (CVCB3), Brazil’s largest travel agency, taking a portion of the securities recently issued by the company. According to a document sent to the company, Opportunity has no intention of influencing the company’s management, and its stake is “solely due to its respective investment strategies.”

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