Tuesday begins at 8:30 a.m. with a live broadcast from President Lula, surrounded by expectations about Planalto’s position regarding the Union’s accounts. After the online appearance, the PT member will meet at 10 a.m. with the allied base and the Minister of Finance, Fernando Haddad, to study alternatives and align the discourse that should bury the idea of a definitive elimination of the primary deficit.
Last week, the president declared that it was not possible to achieve the zero primary deficit in 2024 defended by Finance Minister Fernando Haddad, causing stress in the markets with an increase in future interest rates and the dollar, as well as a fall in the US dollar Stock market.
Yesterday the minister tried to explain that there had been no “departure” from Lula on the goal, but he was unconvinced and the markets fell again. The increasing perception of fiscal risk led the market to price the end of the Selic tightening cycle at 10.90% per year.
In the political scenario, despite the supportive speech of Senate President Rodrigo Pacheco, the CAE (Economic Committee) of the House of Representatives will have to vote today on a draft that requires the government to pay for changes to the chamber’s standing committees, further limiting the scope for Planalto emergencies , further increasing the pressure on the executive branch to review the budget target.
Overseas, the Japanese yen fell after the BoJ (Bank of Japan) disappointed expectations of a change in interest rate policy there. In addition, the Chinese PMI (purchasing managers’ index), which points to an economic slowdown, disappointed expectations.
In raw materials, iron ore ended the first part of the session in Singapore with a slight decline of 0.10%, trading at US$121.60 per tonne. Oil prices recouped some of yesterday’s losses, rising 1.10% to $88.41 a Brent barrel at 7:53 a.m.