INSUBCONTINENT EXCLUSIVE:
As trading begins this Friday, market participants are closely monitoring a trio of economic indicators set to shape global sentiment and
health of a key European economy and consumer demand patterns.Simultaneously, Germany will publish its Producer Price Index (PPI), offering
Consumer Confidence reading will be released
Morning Call for December 20, 2024
(Photo Internet reproduction)Strong confidence can support growth and bolster the local equity market, while weak sentiment can dampen
For Brazil, stability in consumer sentiment and favorable external conditions are crucial in maintaining the recent recovery in its
121,187.91 points after a challenging stretch
dollar retreated to R$6.1237, down 2.27%
Earlier in the session, the greenback touched R$6.30, but momentum reversed following aggressive interventions by the Central Bank,
Markets Yesterday December 19, 2024After an early attempt to rebound, U.S
The S-P 500 edged down by 0.1% to 5,867.08, while the Dow Jones Industrial Average inched up less than 0.1%, and the Nasdaq composite
slipped 0.1%.Mixed economic indicators left Treasury yields fluctuating, as strength in certain areas of the U.S
economy contrasted with signs of faltering manufacturing
This cautious mood abroad can influence emerging markets like Brazil through shifts in global liquidity and investor sentiment.Commodity
MarketsOil Prices DropOil prices fell amid a tightening stance from the Federal Reserve and shifting demand dynamics
Persistent concerns about future global growth and interest rate paths weighed on the market, tempering previously positive outlooks
DeclineGold declined for a sixth consecutive day as the strong U.S
dollar and elevated Treasury yields eroded its appeal
For Brazil, weaker gold prices may affect investor flows into commodity-focused stocks and could signal shifting sentiment on safe-haven
Brazil, a major exporter of commodities, often finds its broader market sentiment tied to these shifts, impacting both corporate valuations
significantly weakened the plan
Lawmakers made 19 changes to key proposals, raising doubts about whether the government can achieve its fiscal goals
billion ($656 million).This decision stems from the current economic uncertainties, including a dollar exchange rate exceeding R$ 6, rising
inflation, and increasing interest rates
Domestically, FGV Consumer Confidence is a critical bellwether for consumption-driven growth
momentum.Reduced commodity prices and volatile crypto markets highlight ongoing uncertainties, while corporate moves demonstrate that
selective foreign investment persists despite macro challenges
In this environment, maintaining fiscal discipline and nurturing investor confidence will be crucial.Key Factors to Watch TodayEuropean
domestic gauge will reveal if improving fiscal dynamics and currency interventions are translating into stronger consumer sentiment,
potentially guiding retail stocks, real estate, and broader market expectations.Central Bank Signals and Fiscal ReformsMarket participants
will monitor any updates on fiscal measures and Central Bank policies that might further stabilize the real and cement investor
