Daily Brief | June 6 2025

Top News

·     In the United States, employment figures for May remained strong.

·     In the Eurozone, retail sales rose by 2.3% in April, well above the market consensus estimate of 1.3%.

·     German exports fell by 1.7% in April, with shipments to the U.S. plunging by 10.5%, while industrial production declined by 1.4%.

·     Canada’s unemployment rate rose from 6.9% in April to 7.0% in May, reaching its highest level in nine years, excluding the atypical pandemic period.

·     The Central Bank of Russia unexpectedly cut its benchmark interest rate, bringing it down to 20%. This marks the first policy move by the Russian central bank since September 2022. 

Economic Outlook

In the United States, employment figures for May remained strong. In May 2025, nonfarm payrolls rose by 139,000 jobs, exceeding the consensus estimate of 130,000. Additionally, job gains for March and April were revised downward by a combined total of 65,000. Meanwhile, the unemployment rate stood at 4.2% in May, in line with market expectations and within the 4.0% to 4.2% range observed since May 2024. Annual wage growth reached 3.9% in the fifth month of the year, above the market forecast of 3.7%. Overall, the U.S. economy remains very strong, with job creation outperforming market expectations and surpassing signals from the ADP private employment survey. In this context, the nonfarm payroll data reinforces the case for a pause in the Federal Reserve’s rate-cutting cycle. Additionally, the figures prompted the yield on the 10-year Treasury note to rise from 4.38% to 4.46% at market open.

Markets and Stocks

U.S. stock index futures are trading higher as markets react positively to the release of May’s nonfarm payroll data, which showed strong job creation and eased concerns over a potential slowdown in the U.S. economy. The solid employment figures come at a time when investors are closely assessing the health of the U.S. economy to gain greater clarity on the direction of Federal Reserve policy amid ongoing trade tensions. In Europe and Asia, equity markets posted mixed results.

In the bond market, Treasury yields rose following the employment report. The 10-year yield stands at 4.7%, while the 2-year yield is at 4.0%.

In commodities, oil prices are rebounding and are on track to end the week with gains after three consecutive weeks of declines. Meanwhile, gold and silver continue their upward trend.

In Mexico, the exchange rate stood at 19.14 pesos per dollar, remaining stable compared to yesterday’s close.

Grupo Aeroportuario del Centro Norte reported a 6.9% increase in total passenger traffic in May 2025 compared to the same month in 2024. Domestic traffic rose 5.1%, while international traffic jumped 19.5%. Monterrey saw the highest activity within the group, with 1.3 million passengers in the month and a 17.8% year-over-year increase.

Grupo Aeroportuario del Pacífico announced that total passenger traffic in May 2025 grew by 2.6% compared to the same period last year. Domestic traffic rose 4.7%, while international traffic fell by 0.2%. Guadalajara was the busiest airport in the group, handling 1.5 million passengers, a 0.3% annual increase.

Grupo Aeroportuario del Sureste reported a 2.2% decline in total passenger traffic in May 2025 versus May 2024. Mexico and Colombia posted declines of 3.0% and 3.4%, respectively, while Puerto Rico saw a 1.3% increase. In Mexico, Cancún was the busiest terminal with 2.3 million passengers, marking a 4.2% annual drop.

Corporate News

• Tesla shares rebounded after a sharp drop the previous day. The company’s stock has been affected by a public dispute between its CEO, Elon Musk, and President Donald Trump.

• Broadcom shares were slightly down in pre-market trading after reporting free cash flow below consensus expectations. Despite strong revenues, the results fell short of market forecasts.

à Circle Internet Group, a stablecoin issuer, saw a significant surge in its stock price on its first day of trading on the New York Stock Exchange.

• Lululemon shares fell sharply after the company issued second-quarter guidance below market expectations. The company also lowered its full-year earnings forecast.