On the radar: resumption of IPOs, payroll in the USA and what moves the markets | Invest

On the radar: resumption of IPOs, payroll in the USA and what moves the markets | Invest
On the radar: resumption of IPOs, payroll in the USA and what moves the markets | Invest

Wall Street: exchanges reflect greater gain in the labor market since August last year (Lucas Jackson / Reuters)

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7:05 general table of the day:

  • USA: Dow Jones futuro rooms 0.52%, S&P 500 futuro increased by 1.18% and Nasdaq future advances 1.76%
  • Yield on 10-year US Treasury bonds drops slightly from 0.001% to 1.722%

In closed markets in Asia and Europe, global exchanges operate in an upward trend. This Monday, 2, the American futures indices advance with the data of the payroll while negotiations are paused on the European continent for the celebration of Easter. In China, markets do not open for the celebration of the Qingming holiday.

The rise in American futures indices responds to robust data in the United States labor market released last Friday. The payroll, the official non-agricultural payroll, increased by 916 thousand in the month, above the economists’ projections compiled by Dow Jones, who expected an increase of 675 thousand. This was the biggest gain since August last year. The unemployment rate fell from 6.2% to 6%, in line with estimates.

The results reflect the country’s high vaccination rate combined with a series of monetary and fiscal stimuli, which boost the economy. The measures include the promise of the Fed, American central bank, not to raise interest rates in the next two years, and also the new package by American President Joe Biden, who announced a infrastructure investment plan at a cost of $ 2.25 trillion last Wednesday.

See below the main highlights of this Monday and of the week:

IPOs are back

In Brazil, the second week of April will be marked by the resumption of the initial public offerings of shares, the IPOs. There are four offers that must be priced by Friday, 9th, with three companies making their debut at B3 if everything goes according to plan and, therefore, without giving up:

  • LG Computers (GENT3): pricing today (4/5), debuting at B3 on Wednesday (7/7)
  • Blau Pharmaceuticals (BLAU3) and Allied Technology (ALLD3): price fixing per share on Wednesday (07/04) and trading on the stock exchange on Friday (04/09)
  • CM Hospital (VVEO3): pricing on Friday (04/09), debuting at B3 next Monday (04/12)

Altogether, there have already been 15 premieres in 2021.

In addition, the week will also have the definition of the price per share of the subsequent offer of Dasa (DASA3), which is scheduled for Tuesday, 6. It is a transaction that can raise approximately 5.7 billion reais and take the company to the Novo Mercado.

New waiver at BB

Investors should also be aware of the resignation of the chairman of the board do Banco do Brasil (BBSA3), Hélio Magalhães, in yet another problematic chapter for the governance of the state-owned company.

In his letter of resignation, released last Thursday, after the market closed, Magalhães spared no criticism of the way the Union – in the figure of President Jair Bolsonaro – started to deal with companies.

The crisis with the government began with Bolsonaro’s displeasure in relation to the restructuring plan announced by the bank in January, which involved closing branches and voluntary dismissal of employees. The then CEO of BB, André Brandão, resigned in March after suffering pressure to review the measures.

Vale repurchases shares

The mining company’s advice OK (VALE3) approved a buyback program limited to 270 million common shares and their respective ADRs, according to a relevant fact disclosed last Thursday, after the market closed. The announcement – which is positive for shareholders – also made investors question if it makes sense for the company to buy its own shares at a stock exchange price close to the historic maximum.

Deadlock with Budget resolved?

A government economic team and congressional leaders reached consensus on the need for changes to the Budget approved for 2021, and the agreement points to a review of spending assumptions and a reduction in half of parliamentary amendments, a source close to the talks told Reuters.

The negotiations on the adjustments to the Budget are expected to last a few more days and “only with luck” the necessary changes would be concluded by the end of next week, according to the source, who requested anonymity.

The budget approved by Congress has legal inconsistencies that make it unfeasible, illegal and unenforceable, according to the evaluation of economists and specialists in public accounts.

Retrospective

The increase in fiscal risk caused by the imbroglio in relation to the 2022 Budget was added to weak industrial indicators to bring down the Ibovespa in early April. The index ended the first trading day of the month down 1.18%.

Pandemic

The lack of control of the pandemic is another factor that increases the risk in the local market. Brazil registered this Sunday 1,240 new deaths as a result of Covid-19, which brings the total number of fatal victims of the disease in the country to 331,433, according to data from the Ministry of Health.

And the situation may even get worse: a study from the University of Washington, in the United States, predicts that the number of deaths by covid-19 may reach 100 thousand in Brazil in the month of April.

Macro agenda

The Central Bank releases, at 8:25 am, the Focus report, which contains economists’ expectations for indicators such as GDP, exchange rate, inflation and interest. In last week’s survey, economists raised the estimates for the IPCA in 2021 from 4.71% to 4.81%.

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