The Day at a Glance | April 29 2024

The Top

• Tourism GDP grew above national GDP in 2023.

• In Mexico, the timely figure for gross domestic product during 1Q24 will be published tomorrow, which we estimate will set at an annual rate of 2.1%, according to seasonally adjusted figures, or 3.0% according to original figures.

• Inflation in Germany rose slightly to 2.4% in April due to higher food prices and a smaller decline in energy compared to previous months (2.3% prev.).

• The yen gained ground against the dollar onMonday, and traders cited yen-buying intervention by Japanese authorities as a trigger for the currency’s rebound.

• Oil prices remained at similar levels to those observed at the end of last week, as peace talks between Israel and Hamas in Cairo eased fears of a wider conflict in the Middle East.

• Stocks in the U.S. are up following the S&P 500’s best week since November.

Economic Environment

Tourism GDP grew above national GDP in 2023.Last year, tourism gross domestic product grew by 4.9%, above the 3.2% logged in national GDP, according to original figures from the Quarterly Tourism Activity Indicator. Within tourism GDP, annual growth in services stood out at 6.6% while goods set at -1.2%, also according to non-seasonally adjusted figures. Meanwhile, tourism spending decreased -0.2% during 2023, compared to the 1.7% increase in national private consumption, according to INEGI original figures. Within tourism related spending, a 9.9% decline in inbound spending (foreigners) was observed, which was offset by a 1.9% increase in domestic consumption (residents). Leading figures for tourism GDP continue to show that this sector has stronger momentum than the overall economy, as it grew at 1.5 times above GDP, and will possiblycontinue to do so this year. However, there will be challenges to consider concerning passenger traffic, especially due to the reduced availability of aircraft for local traffic.

Markets and Companies

Stocks in the U.S. are up following the S&P 500’s best week since November. Last week, the S&P 500 rose 2.7%, marking its best week since November and breaking a three-week losing streak. The Nasdaq also had its best weekly performance since November and logged its first winning week in the last five, while the Dow closed the week 0.7% higher. This morning, American indices are up as investors await more corporate reports, key labor data, and a Federal Reserve meeting during the week. In Europe, markets are in mixed territory as investors anticipate the Fed meeting. The Stoxx 600 index was in positive territory (+0.2%) at 1:57 p.m. London time, with sectors showing mixed performance. In Asia, the Japanese yen strengthened after touching 160 against the dollar, while most regional stocks rose. As for commodities, oil prices fell in early Asian trading on Monday, reversing gains from Friday, as U.S. inflation data further dimmed the prospects of interest rate cuts in the short term and boosted the dollar, which hurts oil demand. In Mexico, the IPC is up (+0.13%) and stands at 57,911 points. Finally, cryptocurrencies are down.

During the weekend, the exchange rate fluctuated between a low of 17.08 and a high of 17.20, currently trading at 17.09.

Corporate News

• Tesla surged more than 13% before the market opening after the electric vehicle company announced on Sunday that local Chinese authorities lifted restrictions on its cars.

• Paramount saw shares climb more than 5% in premarket trading following reports that its board is preparing to fire CEO Bob Bakish as soon as Monday morning.

• Domino’s shares rose more than 5% after surpassing consensus expectations in earnings. Same-store sales increased year over year.