The Day at a Glance | November 4 2024

The Top

• Mixed signals between gross fixed investment and private consumption in Mexico during August.

• In October, 122,051 new cars were sold in Mexico, a 7.0% increase compared to the same month in 2023.

• Donald Trump and Kamala Harris compete for more votes ahead of the US elections.

• The Eurozone’s HCOB manufacturing PMI was slightly revised up to 46.0 points in October 2024, from an initial reading of 45.9 and after standing at 45 in September, suggesting a slower decline in the Eurozone manufacturing sector.

• China has urged France to press the European Commission for an acceptable solution for both European and Chinese electric vehicle industries, while France stated that the block will not compromise on key issues as it pushes to revoke a tariff on brandy.

• Oil prices rose around 3% on Monday due to OPEC+’s decision to delay production increase plans by a month, as the market prepares for a crucial week including the US presidential election. 

Economic Environment

Mixed signals between gross fixed investment and private consumption in Mexico during August. Gross fixed investment fell by -1.9% year-on-year in August according to original figures. Construction declined by -6.1% year-on-year while machinery and equipment rose by 3.5% year-on-year, also based on unadjusted figures. By sector, private investment dropped by -1.2% year-on-year and public investment decreased by -7.4% year-on-year. On a monthly, seasonally adjusted basis, investment fell by -1.9% in August. Meanwhile, private consumption in Mexico reported an annual increase of 2.3% year-on-year in August, according to original figures. Spending on imported goods increased by 7.3% year-on-year and on domestic goods and services by 2.7% year-on-year. On a seasonally adjusted monthly basis, private consumption rose by 0.2% in August. Private consumption and investment figures showed mixed signals, as consumption continues to grow, while investment is beginning to show signs of slowing down.

Markets and Companies

US futures rise ahead of the presidential election. Notably, Nvidia shares climbed 2% in premarket trading after news broke on Friday that the chipmaker would replace its rival Intel in the 30-stock Dow; Nvidia has surged 173% so far this year, while Intel has lost more than half its value over the same period. In Europe, the Stoxx 600 was up 0.12% at 12:45 p.m. London time, with regional markets and sectors mostly mixed. Oil and gas stocks led gains, rising 0.8%, while tech stocks fell 0.7%. In Asia, investors await new fiscal support measures to be announced by China’s parliament on Friday, while October trade data will be released on Thursday following weak export and import growth in September. In commodities, oil rose over 2% on Monday after OPEC+ decided to delay its planned production hike by a month. Most metals are trending upward, and cryptocurrencies are on the rise. In Mexico, IPyC futures are up (0.31%), reaching 50,780 points.

Over the weekend, the exchange rate ranged between a low of 20.03 and a high of 20.28, currently trading at 20.12.

Femsa announced the completion of the sale of its refrigeration and food service equipment operations, Imbera and Torrey, to Mill Point Capital for 8 billion pesos.

Corporate News

• Viking Therapeutics rose 7% after announcing promising results for its experimental VK2735 obesity pill, which showed up to 8.2% weight loss over a four-week period.

• Peloton shares rose 8% following an upgrade by Bank of America, moving from “underperform” to “buy”.