The Day at a Glance | March 9 2021

The Top

· The OECD revised its global growth forecast to 5.6%; Mexico will benefit from trade with the United States.

· The US tech sector is set to regain previously seen losses; after being the most affected sector by the bond-related rally.

· The US House of Representatives will begin to discuss the fiscal stimulus after changes were made in the Senate.

· Janet Yellen gave a speech in which she reiterates fiscal policy, and now dismisses inflationary pressures. With this, equity markets are expected to have a positive opening.

Economic environment

The OECD revised its global growth forecasts to 5.6% for 2021 and 4% for 2022. According to the organization, the economy`s recovery has accelerated; and this has been reflected in the US long-term bond market as well as greater commodity and oil prices. However, recovery has been differentiated. The organization is forecasting a 6.5% growth for the US economy, greater than the previous estimate by 3.3%, which would make it the largest growing developed economy in 2021. This is due to greater fiscal stimuli and how quickly vaccination programs are being planned to be carried out, which are two things that the country`s trade partners will benefit from – including Mexico. In the case of emerging economies, India`s estimated growth has been revised upwards to 12.6% (greater in 4.7%). G20 member countries will grow at around 6.2%; and for Mexico, the estimate set at 4.6% – which increased in 0.9% and is more in line with Mexico`s Central Bank`s forecast.

Inflation for the month of February set at 0.63% month over month and at 3.76% in annual terms, in line with expectations. The underlying price index showed a 0.39% month over month increase and 3.87% in annual terms. Agricultural goods decrease while energy prices increased in 2.5%, continuing their upwards trend. Prices of goods increased in 0.52% while prices of services went up 0.25%.