CANADA MAY RETAILS -0.8% VS FORECAST -0.6%, PRIOR +0.6%

MNI: Canada June Retails Fall And May Biggest Drop In A Year

MNI China Daily Summary: Friday, July 19

MNI BRIEF: China To Boost Consumer Spending, New Industries

MNI BRIEF: China Enhances Fiscal Response To Boost Economy

MNI BRIEF: China To Promote Migrates' Rights, Reform Hukou System

MNI: BAKER HUGHES US RIG COUNT 586; OIL RIGS 477; GAS RIGS 103

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Renewed Optimism Significantly Boosts Local Assets

BRAZIL
  • The main drivers behind this week’s rally appear to be The Workers’ Party demonstration that it is open to negotiations over plans to pave the way to higher fiscal spending by excluding some expenditure from the spending cap rule.
    • Reports indicate that the party might exclude only 150b reais, instead of 198b reais, and for only two years instead of four which is partially removing some of the risk premium for local assets that has become embedded in recent weeks.
  • USDBRL, after opening the week just above 5.42, has seen a near 3% decline to close just above 5.28 on Tuesday. More significantly, the DI swaps curve enjoyed a very impressive session with swap rates in the belly and the long end falling between 56-47 basis points. Lower than expected wholesale price data acted as an additional tailwind for the rally in rates.
  • Initial firm support for USDBRL is unchanged at 5.2445, the Nov 10 low and the next target would be the 200-day moving average which resides around 5.1100.
  • Today, Petrobras’s board holds meeting to define the company’s new strategic plan, which should be disclosed in details on Thursday.
    • - 1200GMT/0700ET: Oct. National Unemployment Rate, est. 8.5%, prior 8.7%
    • - 1230GMT/0730ET: Oct. Public Borr. Primary DE Monthy, est. 27.1b, prior 10.7b
    • - 1230GMT/0730ET: Oct. Nominal Budget Balance, est. -13.6b, prior -60.6b
    • - 1230GMT/0730ET: Oct. Brazil Public Net Debt %GDP, est. 58.1%, prior 58.3%
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.