The Day at a Glance | December 27 2022

*The Central Bank of Mexico will reveal the balance of international reserves up to December 23rd. The previous week´s balance set at 199,438 million dollars. Additionally, the last government securities auction will take place. 

*In the US, wholesale inventories increased 1.0% in November. For their part, retail sales logged a 0.1% monthly increase.

*China made progress regarding the reopening of its borders, eliminating restrictions for international travelers.

*Russian attacks on Ukraine´s electricity grid left Kyiv without power and other utilities at the start of winter. Russia´s President, Vladimir Putin, has called for negotiations while his foreign affairs minister gave Ukraine an ultimatum in four occupied regions.

*The winter storm keeps causing havoc. By Monday night, 3,900 flights from, to and within the United States were cancelled. In New York, assistance services need to plough their way to stranded drivers on highways.  

Economic environment

China reopening its borders boosts markets. The Chinese government announced an easing of restrictions on foreign travelers – such as the elimination of 8-day quarantines. Only a negative Covid-19 test done 48 hours before traveling is required, according to the National Health Commission. Additionally, restrictions implemented on international flights´ capacity were lifted, along with facilitating visa applications for foreigners that need to fly to China for business, education, or family gatherings. Lastly, China has lowered its Covid controls from “maximum level” to its second highest level, removing all legal grounds for aggressive restrictions. With this, Brent oil reached its highest level in three weeks at $84.4 dpb, while Chinese stocks logged gains for a second consecutive day.