The Day at a Glance | April 8 2024

The Top

*Janet Yellen, Treasury Secretary in the United States, said that the United States will not accept its industries being decimated by cheap Chinese imports.

*Today, U.S. President Joe Biden will announce new plans to alleviate student debt for at least 23 million Americans.

*Germany’s industrial production grew by 2.1% m/m, while a 0.3% m/m increase was expected.

*The Kremlin said on Monday that Ukrainian drone attacks on the Zaporizhia nuclear power plant were very dangerous.

*Oil prices fall due to ceasefire talks in the Middle East.

*U.S. stocks are mixed as Wall Street attempts to recover from last week’s decline. 

Economic environment

Janet Yellen, Treasury Secretary in the United States, said that the United States will not accept its industries being decimated by cheap Chinese imports. In a press conference, Yellen warned that President Joe Biden will not tolerate a repeat of a “China shock” like that of the early 2000´s when Chinese imports destroyed about 2 million jobs in the U.S. manufacturing sector. Despite this, Yellen did not threaten with new tariffs or trade actions against sectors highly supported by the Chinese government such as electric vehicles, batteries, solar panels, and other green energy related goods. Yellen said that concerns about overcapacity in China are shared by allied countries in the European Union, Japan, Mexico, the Philippines, and other emerging economies.

Markets and companies

U.S. stocks are mixed as Wall Street attempts to recover from last week’s decline: S&P 500 +0.03%, Dow Jones +0.16%, Nasdaq -0.13%. The Dow Jones fell -2.3% last week, marking its worst weekly performance since March 2023. The S&P 500 dropped nearly -1% during the same period, its largest weekly loss since early January. And the Nasdaq fell -0.8%, its fourth negative week in the last five. However, it is worth mentioning that markets ended the week on a positive note after a stronger-than-expected employment report was published on Friday. In Europe, markets are up in a busy week for central banks. After a mixed opening, the Stoxx 600 was up +0.5% at 1:55 p.m. London time, with mining stocks rising +1.6% while food and beverages were down -0.16%. In Asia, markets closed mostly higher ahead of central bank decisions, and U.S. and China inflation data this week. In Mexico, the IPC is up +0.13%, standing at $58,167 points. As for commodities, U.S. crude oil is down this morning. There are concerns that Iran will carry out an attack in response to last Monday’s Israeli strike in Damascus that killed senior Iranian commanders. Growing tensions between Israel and Iran have renewed fears that direct confrontation between the two could ignite a regional conflict that disrupts the supply of crude oil. Lastly, cryptocurrencies are up: Bitcoin +3.9%, Ether +7.4%, XRP +2.3%.

Over the weekend, the exchange rate fluctuated between a low of 16.36 and a high of 16.49, currently trading at 16.36.

Corporate news

*Tesla shares rose +3% after Elon Musk said the company will unveil its long-awaited robotaxi design on August 8th.

*Boeing shares fell -1% in pre-market trading. On Sunday, the Federal Aviation Administration said a 737-800 operated by Southwest Airlines had to return to Denver Airport after an engine cowling fell off the aircraft mid-flight and hit a wing flap.

*BJ’s Wholesale shares increased +2.4% following an upgrade from Goldman Sachs from neutral to buy. The bank sees upside potential in BJ’s earnings, driven by several factors, including growth in grocery volume.