The Day at a Glance | February 5 2025

The Top

• In Mexico, gross fixed investment and private consumption advanced marginally in November.

• The ADP private employment survey reported that US employment increased by 183,000 jobs in January, surpassing the consensus estimate of 150,000. The figures suggest positive data for the non-farm payrolls report to be released on Friday.

• In the US, the 2024 trade deficit in goods stood at -$1,211,747 million, the largest deficit on record since 1992. Compared to 2023, the deficit rose by 17.0%.

• Later, January´s ISM Services index will be released, with the market consensus estimating it to set at 54.3 points.

• India plans to review its tariffs on around 30 products, including luxury cars, solar panels, and chemicals, according to sources close to the finance minister. Additionally, it may increase imports from the US as global trade tensions rise.

• Oil prices fell by nearly 1.0% on Wednesday due to increases in US crude inventories and concerns about rising trade tensions between the US and China.

Economic Environment

In Mexico, gross fixed investment and private consumption advanced marginally in November. Gross fixed investment fell by 0.7% year-over-year in November, according to original data. Construction declined by 6.0% year-over-year, while machinery and equipment increased by 5.8% year-over-year, also based on unadjusted figures. By sector, private investment expanded 1.4% year-over-year, while public investment decreased 16.4% year-over-year. On a monthly seasonally adjusted basis, investment rose 0.1% in the eleventh month of the year. Meanwhile, private consumption in Mexico reported a 0.3% year-over-year increase in November, according to original data. Within this, spending on imported goods fell by 0.7% year-over-year, while spending on domestic goods and services increased 1.0% year-over-year. On a seasonally adjusted monthly basis, private consumption rose 0.5% in November, breaking three consecutive months of declines. Both private consumption and gross fixed investment logged marginal growth; however, in their year-over-year comparisons, weakness is still reported.

Markets and Companies

Futures for major US indices show mixed movements after mixed quarterly figures from Alphabet and chipmaker AMD, which dragged the tech sector lower. A drop in Apple also put pressure on futures.

On the other hand, European markets were slightly higher on Wednesday, driven by strong corporate earnings that boosted stocks in various sectors. The Stoxx 600 was up 0.18% at 12:43 p.m. in London, with sectors showing mixed performance.

Asia-Pacific markets mostly rose following Wall Street’s rally, while China resumed operations and imposed tariffs in response to US measures.

As for commodities, oil prices fell due to increased inventories in the US and concerns over a new trade war between China and the US, which fueled fears of slower economic growth.

Gold reached a record high due to fears of a new trade war after Beijing imposed tariffs on US imports.

In Mexico, IPC futures are trading higher (+1.15%), and the exchange rate is at 20.63 after closing at 20.50 yesterday.

Corporate News

• Alphabet shares fell 7% after the Google parent company reported cloud service revenue below expectations, amid an increase in spending on artificial intelligence.

• IDEXX Laboratories shares rose 11.1% after the veterinary healthcare company reported revenue of $954.3 million in the fourth quarter, surpassing the FactSet estimate of $935.1 million.