Daily Brief | May 27 2025

Top News

·     Mexico reported weak employment figures for the first quarter of 2025.

·     Agustín Carstens, General Manager of the Bank for International Settlements, emphasized that governments must halt the rise in public debt, as higher interest rates are creating unsustainable fiscal situations in some countries.

·     In the U.S., durable goods orders decreased 6.3% month-over-month in April. However, excluding transportation and defense, orders increased 0.4% monthly.

·     Later today, the consumer confidence index will be released. The consensus forecast places it at 87 points for May.

·     The Governor of the Bank of Japan stated that the institution must remain alert to risks of rising food prices, which could push core inflation higher. He added that interest rates may continue to rise.

·     According to a Reuters report, Japan’s Ministry of Finance is considering changes to its bond issuance program for the current fiscal year, which could include reducing the issuance of long-term bonds. 

Economic Outlook

Mexico recorded soft labor market data in Q1 2025. According to the National Survey of Occupation and Employment, the economically active population stood at 60.5 million, 59.0 million of which were employed and 1.5 million were actively seeking a job (unemployed). Among those employed, 32.0 million were working under informal conditions—such as self-employed workers in agriculture or people without social security—meaning that 54.3% of the employed population worked informally. The unemployment rate stood at 2.5% in the first quarter. The survey data signals a cooling labor market, with approximately 120,000 jobs lost compared to the same period in 2024, aligning with expectations of weak economic growth in the country.

Markets and Stocks

U.S. futures rose on Tuesday after President Donald Trump announced over the long weekend that he had agreed to delay the 50% tariffs on the European Union. All “Magnificent 7” stocks were trading higher before the opening bell, led by Nvidia, which was up 2.5% ahead of its quarterly earnings release on Wednesday.

In Europe, the British pound continued to strengthen against the euro, boosted by strong economic data in the U.K. and an increase in inflation to 3.5% in April, which may delay interest rate cuts by the Bank of England.

Meanwhile, Asian markets closed mixed as investors continued to assess the global trade outlook following Trump’s decision to delay the 50% tariffs on EU imports.

In commodities, oil prices remained mostly flat as markets expect OPEC+ to announce a production increase during its meeting this week.

Gold prices, on the other hand, fell Tuesday morning, pressured by the stronger dollar and slower demand for safe-haven assets after Trump’s softer stance on tariffs against the European Union.

In Mexico, IPC futures rose 0.33%, and the peso traded at 19.19 per dollar, after closing at 19.24 yesterday. 

Gentera announced new and increased credit lines totaling MXN $6.15 billion: a new MXN $1,000 million credit line with Banorte; an increase in its line with Nacional Financiera from MXN $10 billion to MXN $15 billion; and an increase in its line with Banco del Bajío from MXN $300 million to MXN $450 million.

Corporate News

à Tesla shares rose more than 2% in premarket trading, boosted by Elon Musk’s Saturday announcement that he will shift more focus to his companies. Tesla has been negatively affected by Musk’s political involvement, and according to the European Automobile Manufacturers’ Association, the company’s European sales fell 49% year-over-year in April.

à Informatica shares jumped 6.5% following news that Salesforce will acquire the cloud data management company. The $8 billion deal aims to strengthen Salesforce’s AI capabilities. However, it´s worth pointing out that a previous deal between the two companies collapsed last year.