The Day at a Glance | December 2 2024

The Top

• China’s economy accelerated in November, according to PMI indices.

• Later today, the ISM Manufacturing Index for November will be released, with the consensus expecting it to come in at 47.6 points.

• The European Central Bank should base its monetary policy decisions on upcoming risks rather than recent economic data, said ECB Chief Economist Philip Lane, in an interview published by the Financial Times on Monday.

• US President-elect Donald Trump threatened BRICS countries with 100% tariffs on their exports to the US.

• In Mexico, the unemployment rate stood at 2.8% in the third quarter, according to seasonally adjusted figures.

• Oil prices rose more than 1% on Monday, boostedby strong economic activity in China, the world’s second-largest oil consumer, and escalating tensions in the Middle East, where Israel resumed attacks on Lebanon despite a ceasefire agreement.

Economic Environment

China’s economy accelerated in November, according to PMI indices. The non-manufacturing PMI stood at 50.0 points in November, slightly down from 50.2 in October and matching September’s level. This reading is at the 50-point threshold that separates expansion from contraction. Within the non-manufacturing PMI, the construction index fell to 49.7 points (previously 50.4), while indices related to telecommunications, satellite services, internet, software, technology, and financial markets exceeded 55 points, signaling accelerated growth. In contrast, the retail sector remains in contraction. Meanwhile, the manufacturing PMI increased from 50.1 to 50.3 points between October and November, marking two consecutive months above the 50-point threshold, indicating expansion. Within the manufacturing index, production, new orders, and delivery times were above 50 points, while raw material inventories and employment fell below that level. As a result, China’s composite PMI stood at 50.8 points in November, maintaining expansion for a second consecutive month. Overall, China’s economy is gaining momentum midway through the final quarter of the year, which will back aneconomic recovery. However, the weak consumer sector remains a concern for Chinese officials.

Markets and Companies

S&P 500 futures show slight changes after recording the best month of 2024. Much of November’s performance centered on a post-election rally; November marked the best month of the year for both the Dow Jones and S&P 500, with gains of 7.5% and 5.7%, respectively.

European markets are trading higher. The Stoxx 600 recovered from an early drop, rising 0.59% at 12:19 p.m. London time after closing November with its best monthly performance since August.

Similarly, Asia-Pacific markets mostly traded higher as they began a data-heavy week, with investors focusing on economic indicators from several countries, including Japan, South Korea, and China.

Regarding commodities, oil prices are rising, boosted by a rebound in manufacturing activity in China, the world’s second-largest oil consumer, and by Israel’s resumption of attacks on Lebanon despite a ceasefire, escalating tensions in the Middle East.

Metals and cryptocurrencies are trading lower. In Mexico, IPyC futures are up (0.21%).

Over the weekend, the exchange rate ranged between a low of 20.27 and a high of 20.59, currently standing at 20.59.

Cemex completed the sale of its operations in the Philippines for USD $800 million. The transaction included the divestment of Cemex Asian South East Corporation, Apo Land & Quarry Corporation, and Island Quarry and Aggregates Corporation, along with the transfer of USD $387 million in Cemex Holdings Philippines’ financial debt.

Corporate News

• Gap shares rose 4.7% after JPMorgan upgraded its rating to overweight. The firm highlighted a strong start to the holiday shopping season and a long-term growth outlook.

• Stellantis shares fell 9% after CEO Carlos Tavares resigned from his position with immediate effect. The company cited “differences of opinion” between Tavares and the board of directors as the reason for his departure.