The Day at a Glance | November 25 2024

The Top

• The construction of industrial and commercial buildings in Mexico remains dynamic.

• Later today, Mexico’s balance of payments for the third quarter will be released, including details on the current account and foreign direct investment.

• On Monday, China’s central bank injected 900 billion Yuan ($124.3 billion) into the banking system through one-year loans, while local governments ramped up bond sales to alleviate debt burdens.

• Philip Lane, chief economist of the ECB, stated that there is still a long way to go before Eurozoneinflation sustainably returns to 2%. However, he noted that ECB policy shouldn’t remain restrictive for too long, as it could push price growth below target.

• On Monday, Bank of England Deputy Governor Clare Lombardelli said that she is more concerned about inflation risks being higher — not lower — than the central bank’s forecasts, advocating for gradual interest rate cuts.

• Oil prices steadied on Monday after last week’s 6% gains, as escalating tensions between Western powers and major oil producers fueled fears of supply disruptions.

Economic Environment

The construction of industrial and commercial buildings in Mexico remains dynamic. INEGI released the National Survey of Construction Companies (ENEC) for September, reporting a -4.8% m/m decline in real terms, based on seasonally adjusted figures. The ENEC data shows formal construction carried out by construction companies and excludes self-construction by businesses and residential projects. Annually, the overall change shows significant declines, with total production value down -22.4% in September compared to -15.6% in August (non-seasonally adjusted). Within the data, the construction of industrial and commercial buildings stands out, increasing by 15.4% y/y in September, following 16.2% y/y in August and 20.4% y/y in July, demonstrating continued dynamism in the sector. While the broader construction sector is slowing, this is primarily due to a sharp decline in public construction (-44.0% y/y), with the private sector overall stagnating (-0.1%), albeit with variations across sub-sectors. Construction activity may strengthen next year with the revival of the government’s new flagship projects, which are already outlined in the 2025 budget.

Markets and Companies

US futures are trending higher as Wall Street kicks off a short trading week due to the Thanksgiving holiday. Additionally, Donald Trump announced his intention to nominate Scott Bessent, founder of Key Square Group, as Treasury Secretary. Investors welcomed the choice, viewing him as someone likely to support the stock market and potentially mitigate some of Trump’s more extreme protectionist policies.

In Europe, the Stoxx 600 was up 0.11% at 1:28 p.m. London time. Mining stocks led gains (1.21%), while the retail sector declined by 0.8%.

In Asia, markets closed with mixed results as investors await a series of economic reports, including industrial data from China.

Regarding commodities, oil prices stabilized on Monday after a 6% increase last week. Rising tensions between Western powers and major oil producers, Russia and Iran,fueled fears of supply disruptions. 

Metals and cryptocurrencies are logging mixed figures.

In Mexico, IPyC futures are trading higher (+0.20%). 

The exchange rate fluctuated between a low of 20.27 and a high of 20.45 over the weekend; it´s currently at 20.28.

Corporate News

• Bath & Body Works shares rose 16% after slightly exceeding third-quarter expectations.

• Robinhood shares gained over 7% after Morgan Stanley upgraded its rating from hold to buy.