February 05, 2024 11:48 GMT
Congress Returns From Recess, Jan Services PMI Due
- The USD is favoured in early Monday trade, with the greenback firmer for a second session after Friday’s solid payrolls release. An appearance from Fed chair Powell on 60 Minutes has added to the hawkish market reaction, within which he suggested markets may have to wait until a few months before the Presidential election in November for the first Fed rate cut.
- Congress returns today from recess, which should renew the focus on the debate with the government over the payroll tax reforms. In other news, Brazil’s Grupo Soma and Arezzo have agreed to merge in a deal that will give the combined company revenue of approximately BRL 12bn. Arezzo’s shareholders will own 54% of the new company and Grupo Soma’s shareholders will own 46%.
- On the data front, services and composite PMI data for January will cross at 1300GMT and January vehicle sales figures will also be published.
- Jan. S&P Global Brazil Composite PM, prior 50.0
- Jan. S&P Global Brazil Services PMI, prior 50.5