* Cotações com atraso superior a 15 minutos via Bats CHI-X Europe e NASDAQ Basic

Patris Daily - 9 July 2018 part 1

9 Jul 2018


Europe: the European stock indices rose on the last session of the week, with Portuguese PSI20 (+0.55%) outperforming. STOXX600 increased slightly (+0.20%) with 14 out of the 19 main sectors closing the day with gains.

Eurozone sovereign debt market: mixed session for 10-year bonds in the region. Portugal (+0.5 bps to 1.791%) registered a slight increase.

Portugal: PSI20 closed 0.55% higher (+1.29% during the week), with 12 its members closing the day with gains. Ibersol (+5.15%), NOS (+2.31%) and Semapa (+2.22%) outperformed.

FX & Commodities: oil prices traded lower, with the first future of Brent down by 0.36% (-2.93% during the week). Gold slipped 0.19% during the session (+0.23% during the week). EUR/USD closed higher +0.47% (+0.53% during the week).

US Equity & Debt Markets: S&P500 finished the day 0.85% higher, with all its 11 main sectors closing positive. Health Care (+1.45%) and Technology (1.24%) registered the strongest gains. 10-year UST yield were little changed at 2.823%.

Latin America: In Brazil, a judge from TRF-4 appeals court ordered former President Lula da Silva to be freed. However, after that, a series of Brazilian judges decided to block that same order. In Chile, according to local press, the finance minister will probably raise 2018 growth forecast from 3.5% during presentation in Congress this week, despite deterioration in the external context. 2Q18 should have been the best quarter since 2012, while growth rates will be somewhat lower in 2H18. He added that should threat to global trade subside copper prices ought to rise to at least $3 a pound on supply shortfall. He said that government will not take additional tax measures until it evaluates public finances and ruled out increase in personal income tax.

In Chile, consumer prices rose by 0.1% m/m in June (vs. consensus +0.2% m/m) and the central bank expectation of 0.2% m/m. The annual rate accelerated from 2.0% y/y in May to 2.5% y/y in June (vs. consensus 2.6% y/y), approaching the 3% target midpoint. In Colombia, CPI inflation printed at 0.15% m/m in June (vs. consensus +0.17% m/m and the central bank survey expectation of 0.18% m/m). Headline inflation stood at 3.20% (vs. consensus 3.22% y/y), following 3.16% y/y in May. In Brazil, Headline IPCA printed at 1.26% m/m in June (vs. consensus 1.28% m/m), reflecting the truckers’ strike. The annual rate accelerated from 2.86% y/y in May to 4.39% y/y in June (vs. consensus 4.41% y/y), still below the 4.5% BCB’s target midpoint for 2018.

Asia: Asian equity indices followed US equities higher: TOPIX +1.20%, HANG SENG +1.53% as we type, SHANGHAI COMPOSITE +2.47%, HSCEI +2.00% as we type, TAIEX +1.05%, KOSPI +0.57% and S&P/ASX200 +0.22%.