The Day at a Glance | October 18 2023

*China’s activity figures positively surprised at the end of the 3Q23. 

*US President Joe Biden arrived in Israel hours after deadly explosions at a Gaza hospital. Palestinian officials blame Israel for what happened; however, Biden commented that the explosions apparently were caused “by the other side.” 

*Republican Jim Jordan failed to obtain the necessary votes to secure the leadership of the House of Representatives this Tuesday. Because of this, Jordan scheduled another vote to take place today at 9:00 am (Mexico City time), and according to CNN, he is willing to hold as many votes as necessary to win, similar to what Kevin McCarthy did previously.

*Housing construction in the United States recorded a monthly 7.0% increase in September. Meanwhile, building permits dropped by -4.4% in the same period. 

*The Federal Reserve will release its Beige Book today at 12:00 pm (Mexico City time). 

Economic environment

China´s economy grew more than expected in the 3Q23 as it recorded a 4.9% y/y expansion. This figure exceeded the 4.4% expected by the analysts´ consensus. Although it logged a slowdown compared to the 6.3% y/y from the previous period, the figure provides hope that the 5.0% growth target set for this year can still be achieved. Similarly, industrial production and retail sales readings in September set above market forecasts, with 4.5% and 5.5% annual figures (vs 4.3% and 4.9% expected). Lastly, when considering the first nine months of the year, China´s economy recorded a 5.2% growth rate.