Daily Brief | June 10 2025

Top News

·     Weak figures were recorded for Mexico’s automotive sector in May.

·     The United States and China continue negotiations in London aimed at easing tensions. The talks seek agreements on technology exports and rare earth elements. The U.S. may lift certain restrictions in exchange for China easing its grip on the supply of these critical materials.

·     The U.S. government has asked an appeals court to extend the suspension of a ruling that declared Trump-era tariffs illegal. It argues that the decision undermines presidential authority over foreign policy, aiming to keep the tariffs in place.

·     Donald Trump and Republican lawmakers are pushing forward with their tax cut plan, ignoring warnings about a potential significant increase in federal debt. The bill also aims to raise the debt ceiling by up to $5 trillion to prevent a possible default.

·     The U.S. Federal Reserve is expected to keep interest rates unchanged for at least a couple more months, according to most economists surveyed by Reuters, as persistent risks of an inflationary rebound driven by President Trump’s tariff policies remain. 

Economic Outlook

Weak figures were recorded for Mexico’s automotive sector in May. New vehicle sales totaled 119,959 units, representing a slight annual decline of -0.41%. Light vehicle production fell by -2.0% year-over-year to 358,209 units, while exports reached 301,112 units, marking a -2.9% annual decrease. Cumulatively, during the first five months of the year, the sector posted declines of -0.45% in production and -6.3% in exports, while new vehicle sales showed a modest increase of 0.95%. Overall, May figures were negative for the automotive sector, as auto exports continue to face high tariffs on non-U.S. components. Meanwhile, the decline in domestic sales is consistent with a broader economic slowdown.

Markets and Stocks

U.S. stock index futures are trading higher, with investors focused on the progress of U.S.-China trade negotiations. Today marks the second day of talks in London. Meanwhile, the market is awaiting May inflation figures, which are set to be released this week. These figures could provide more clarity on the direction of the Federal Reserve’s monetary policy and the impact of trade policies. In Europe, stock markets showed a negative bias, while Asian markets saw gains.

In the fixed income market, Treasury yields were declining, with the 10-year bond at 4.45% and the 2-year bond at 3.99%, as participants await developments in trade negotiations and producer and consumer inflation data.

In commodities, oil prices are advancing, while metals show mixed performance, with gold rising and silver and copper declining.

In Mexico, the exchange rate was trading around 19.06 per dollar, after closing yesterday at 19.04.

Corporate News

• Shares of Taiwan Semiconductor Manufacturing listed in the United States are up after reporting 39.6% revenue growth in May compared to the same month last year. Additionally, cumulative revenues from January to May increased by 42.6% compared to the same period in 2023.

• Apple stock shows a slight gain in pre-market trading, after falling in the previous session. The company presented its new software update called Liquid Glass during its annual developer conference, but did not announce significant advancements in artificial intelligence.

• Tesla shares continue to rise after a sharp increase in the previous session. President Donald Trump stated that he wishes Elon Musk the best and has no intention of blocking the use of Starlink at the White House, following a public dispute between the two last week.