May 21, 2022

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Shares fall sharply, Brent tops US $ 125, US and Europe considering Russian oil embargo: Today’s market highlights

US futures and European stocks fell sharply on Monday morning following news that US and European allies are considering a ban on Russian oil imports. This led to another booming session for cargo.

Secretary of State Anthony Blingen said Sunday that the United States and its allies were considering a ban. Russian oil imports And natural gas in response to the country’s attack on Ukraine.

In a letter to fellow Democrats, President Nancy Pelosi said US representatives were “examining strong legislation” to ban Russian oil imports – which would “further isolate Russia from the world economy”.

The move could put the global economy at risk of sluggish economic growth and high unemployment, with high inflation.

Oil prices hit an all-time high in 2008, before responding to news reports, downsizing slightly. Brent crude is up more than 8% and WTI is up 7.5%.

Russia has been intensifying its offensive against neighboring Ukraine in recent days, and forces are trying to advance Isolate the capital of Kiev And when other major cities face fierce Ukrainian opposition.

Western powers have already imposed punitive sanctions in an attempt to isolate Russia from the world economy, but the Kremlin has continued its invasion and Ukrainian President Volodymyr Zhelensky has insisted. NATO Ukraine needs to implement a no-fly zone, which is not yet available.

Russia and Ukraine are due to hold a third round of talks on Monday, but Putin’s failed to abide by the latest agreement to open humanitarian corridors and allow civilians out of war zones without confidence in a ceasefire.

Here, strong improvements in oil may strengthen the government’s plans to launch a fuel subsidy program that is valid for three to six months. Two bills seeking alternative ways to reduce petrol and diesel prices at pumps are scheduled to be voted on in the Federal Senate on Wednesday (9).

Following the recession caused by the carnival, the balance sheet crop was re-launched this week in full swing, with emphasis on the results of Embraer, Cole, CSN and the like.

1. Global Scholarship

To us

Amid the ongoing war between Russia and Ukraine, the US future fell on Monday morning as US oil prices rose to their lowest level since 2008.

See the performance of futures markets:

  • Dow Jones Future (USA), -1.69%
  • S&P 500 Futures (US), -1.76%
  • Nasdaq Futures (USA), -1.75%

Asia

Asian markets closed with heavy losses echoing rising oil prices, and the Russia-Ukraine war continues to weigh on the sentiment of investors around the world.

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The Hong Kong Cheng index in Hong Kong led to losses on a regional scale, down more than 4% at one point before seeing a small recovery.

According to official data released on Monday, China’s exports grew by 16.3% year-on-year in dollar terms during the January-February period. This was higher than analysts expected in a Reuters poll for a 15% increase.

China on Saturday set a GDP growth target of 5.5% for 2022.

  • Shanghai SE (China), -2.17%
  • Nikkei (Japan), -2.94%
  • Hong Cheng Index (Hong Kong), -3.87%
  • Cosby (South Korea), -2.29%

Europe

European markets are plummeting following reports that US and European allies are considering a ban on Russian oil imports, risking global “stagnation”.

  • FTSE 100 (UK), -2.33%
  • DAX (Germany), -4.62%
  • CAC 40 (France), -3.57%
  • FTSE MIB (Italy), -5.70%

Ingredients

The price of US crude oil briefly reached $ 130 a barrel, the highest in 13 years on a possible Western embargo on Russia’s oil.

Secretary of State Anthony Blinken told CNN on Sunday that the United States and its allies were considering banning Russia’s oil and natural gas imports.

  • WTI oil, + 8.57%, $ 124.25 a barrel
  • Brent crude was up 8.08% at $ 127.65 a barrel
  • Iron ore traded up 7.08% at 870.00 Yuan, equivalent to US $ 137.68 on the Dalian Exchange.

Bitcoin

  • Bitcoin, -2.80% to $ 38,101.82 (up from 24 hours ago)

2. Table

The second week of March begins as investors are aware of the same tensions that mark the beginning of March. In the midst of Russia’s war with Ukraine the indicator agenda is accelerating, which, above all, has affected the prices of companies related to raw materials and supplies.

In this context, the economic indicators for the year 2022 have begun to emerge. . The Refinitiv market consensus indicates a 1.8% decline compared to December and a 6.1% decline compared to January 2021.

Data on vehicle production and sales was released on Tuesday (8) by Anfavea, the National Association of Motor Vehicle Manufacturers.

With regard to fuel prices, two bills looking for alternatives to reduce petrol and diesel prices at pumps are scheduled to be voted on in the Federal Senate on Wednesday (9).

The week ends with the release of the Broad Consumer Price Index (IPCA) for February. Refinitiv Consensus points to a 0.96% monthly advance, raising the 12-month IPCA to 10.50%.

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Brazil

8:25 a.m .: The central bank releases the Focus Bulletin with analysts’ expectations on indicators such as inflation, interest rates and GDP.

10 a.m .: February Joint PMI

10 a.m .: March Service Department BMI

United States

5pm: January Consumer Credit

3. The government is evaluating measures to control high fuel prices

The government of President Bolsanaro is determined to avoid further increases in petrol and diesel in the country due to fears about the electoral consequences of rising fuel prices for re-election candidate Bolsanaro.

There are alternatives to the change in the ICMS collection calculation by bill; Creating a fund (Petroprose dividends and union-owned pre-salt income) and changes in fuel prices by the state agency.

Lira extends remote voting system

Despite the reduction in the number of Govt-19 cases and the easing of social isolation measures, the Speaker of the House of Representatives Arthur Lira (PP-AL) last Saturday extended the implementation of the remote voting system indefinitely.

Voto to Micro Enterprise Refs may vote next week

Congress may also analyze the veto of 16th President Bolsanaro, also known as the Refs, on the complementary bill that would create a tax credit refund scheme for micro and small enterprises known as the Simplification National (RELP) Debt Restructuring Program. Valor newspaper report.

The loans total R $ 20 billion and the voting date is still under negotiation. If the proposals to control the rise in fuel prices are voted on this week it will happen next week.

4. Govt

Last Sunday (6), 219 deaths and 15,810 Covid-19 cases were reported in 24 hours in Brazil, according to the Federation of Press Vehicles at 8 p.m. In Brazil, the moving average of coveted deaths in 7 days is 430, down 48% from 14 days earlier.

The moving average of new cases in seven days was 40,161, which represents a 60% drop from the level 14 days ago.

In Brazil, 155,757,233 people are fully immunized against goiter, which equates to 72.5% of the population.

The number of people taking the minimum first dose of the vaccine reached 173,038,399, which is 80.55% of the population.

The booster dose was given to 66,074,186 people or 30.76% of the population.

5. Corporate Radar

We are (VAMO3)

Vamos (VAMO3) has signed an agreement to buy a 70% stake in Truckvan Industria.

The deal offers an investment of R $ 30 million, will be made on the due date, and a secondary acquisition of R $ 54 million, partly in cash and part installments, with a 70% indirect stake in VAMOS. In Vamos Seminovos, in Dragon. In addition, the 100% value of the truck is equivalent to R $ 90 million.

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Petroprose (PETR3;PETR4)

The government named Rodolfo Landim, the current president of Flamenco. To chair the Board of Directors of Petropras. The announcement was made on Saturday (5) evening by an item sent by the Government Agency to the Securities and Exchange Commission (CVM).

“Petróleo Brasileiro SA – Petrobras reports that the Board of Directors has received eight recommendations from the Ministry of Mines and Energy and four recommendations to the Company’s Finance Council and an official letter from the Ministry’s National Treasury Secretariat. Informed to own company.

Petroprose also announced that CNOOC Petroleum had signed an agreement with Brazil to pay 5% interest on a product-sharing agreement on the pre-salt layer of the Santos Basin, in the Búzios sector, in excess of the allocation of rights. .

The amount involved in the negotiations for the participation of the Brazilian oil company is R $ 2.12 billion. The value was calculated on the basis of September 1 last year, with an exchange rate of R $ 5.07 per US dollar.

After approval by competent bodies, the Brazilian oil company will hold 85% interest in the sector, while CNOOC Petroleum will hold 10% in Brazil. The other partner is CNODC Brasil Petroleo e Gás, which is 5%.

BRF (BRFS3)

BRF (BRFS3) information No export ban has been officially announced by ChinaIts unit is chicken meat located in Lucas do Rio Verde (MD).

The relevant fact is that the company said it knew the information through the website of China’s General Administration of Customs (GACC) and that it has strict security measures in place and will take appropriate action to change the situation. Food and quality controls.

Electrophores (ELET3; ELET6)

Eletrobras (ELET3; ELET6) announced that it will allocate R $ 6.5 billion to its subsidiary Eletronuclear, which will be used to obtain nuclear fuel for the Angra 1 and Angra 2 nuclear power plants. Brazil (INB).

(With Estado Condito and Agensia Brazil)

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