The Day at a Glance | April 5 2024

The Top

*In March, the non-farm payroll surprised with 303,000 jobs.

*Retail sales in the Eurozone fell by -0.7% in February, marking 17 consecutive months of contraction (-1.3%e.).

*In Mexico, during the first quarter of the year, 927,781 light vehicles were produced and 824,971 units were exported.

*U.S. Treasury Secretary Janet Yellen said on Friday that concerns are growing about the global economic consequences of China’s manufacturing overcapacity.

*On Friday, the Bank of Japan hinted that a new interest rate hike in the coming months is possible.

*Markets slightly up after the worst trading session in over a year. 

Economic environment

In March, the non-farm payroll surprised with 303,000 jobs. The Bureau of Labor Statistics (BLS) released employment data for March, highlighting strong job growth – 303,000 new jobs, setting above the consensus forecast and the estimated employment needed to avoid unemployment by 200,000. Job creation occurred in the healthcare, government, and construction sectors. Additionally, the BLS revised its job creation for January and February upward by a total of 27,000 jobs for both months. On the other hand, it was reported that the unemployment rate stood at 3.8% in March. Private sector wage growth increased by 4.1%, down from 4.3% logged a month ago. In summary, U.S. employment data continues to show a very strong labor market with job creation exceeding estimates and wages moderating their rate of growth.

Markets and companies

Global markets with mixed sentiment. Main U.S. indices closed the previous day with losses. This morning, markets started the day on a positive note: Dow +0.22%, S&P +0.40%, and Nasdaq +0.66%. In Europe, markets are showing losses, with the Euro Stoxx down -1.25%, concluding a lackluster first week for the new quarter. In Asia, markets closed mixed: Japan’s Nikkei 225 fell -1.96% and set at 38,992.08, marking the first time in about three weeks that the index has fallen below 39,000, while China remained unchanged as the Shanghai index closed at 3,069.3. In Mexico, the IPC opened lower, standing at 57,845 points (-0.06%). Oil recorded an increase in price and is on track to record a weekly gain as tensions rise in the Middle East, with Israel closing embassies due to threats from Iran. The price is at $86.76 per barrel (+0.20%). Natural gas is up (+0.40%). Meanwhile, metals are mostly down, with gold +0.30%, silver -0.30%, and copper -1.00%. Lastly, cryptocurrencies are down.

The exchange rate fluctuated during the early hours, reaching a minimum of 16.45 and a maximum of 16.60, currently trading at 16.47.

Corporate news

*Samsung Electronics reported that it expects a 931% increase in first-quarter operating profit due to a recovery in memory prices.

*Shares traded in Hong Kong of HSBC and Standard Chartered rose after the banks announced share buybacks in London.