Archives of “Economy of Brazil” tag

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Oil ignores the Saudi-Russia war drums so far today

  
  Analysis
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Oil sneaks back above $34, bounce of over 9% for today

WTI H1 10-03

Oil moved a little lower on the headline that Saudi Arabia would step up production to 12.3 mil bpd next month but buyers leaned on the near-term trendline support to keep a move towards the $34 level seen currently.
Since the headline, there have been a couple of Russia and Saudi Arabia remarks as well but so far oil is not faltering just yet. So far, the market mood has been relatively positive with US futures also seeing gains of over 4% today.
But with coronavirus fears still persistent and Saudi Arabia and Russia heading for a prolonged duel, it is going to be hard to see how oil can sustain any meaningful gains.
For today, look out for the overnight high @ $34.88 as that may provide a technical reprieve on a move higher in oil prices. But in the big picture, there’s only so long that oil can ignore the war drums before falling lower once again.

Brazil’s central bank cuts benchmark rate by 50bps

  
  Analysis
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Banco Central do Brasil: “That’s not a rate cut, THIS is a rate cut!”

50bps cut from Brazil’s central bank.
  • decision was unanimous
  • consolidation of benign inflation outlook should give room for additional policy stimulus
  • says economic data since last meeting consistent with gradual recovery
  • global economic outlook uncertain, risks of greater slowdown persist
  • underlying inflation at comfortable levels
  • sees inflation moving back to target over the relevant time horizon, which includes 2020 calendar yearbut sees inflation risk in both directions

Headlines via Reuters

Cut to 5.5%, which I think is the lowest seen in Brazil?
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