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June Current Account Balance Data, Stocks Near Two-Year highs

BRAZIL
  • Brazil is expected to report a current account surplus of $1b in June, according to economists surveyed by Bloomberg, after a $649m surplus in prior reading. Central bank releases report on its website at 1230BST/0730ET:
    • June Current Account Balance, est. $1b, prior $649m
    • June Foreign Direct Investment, est. $6.3b, prior $5.38b
  • Released earlier this morning, construction prices rose 0.06% m/m (estimate +0.11%) in July versus +0.85% in June, according to FGV. This translated into construction prices rising 3.15% y/y versus +4.29% in June.
  • On Tuesday, Brazil’s main Ibovespa stock index rose to the highest levels since August 2021, as softer-than-expected inflation data bolstered the potential for a greater rate cut from Brazil’s central bank next week. Vale led the advance amid signs of China support measures and after a WSJ report that the miner is close to selling 10% of its base-metal operations to the Saudis, a deal that could be unveiled as soon as next week.

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