· IMEF shows weak recovery regarding Mexico`s economy during November.
· FED does not plan to decrease or increase its purchasing program in the short term: Powell.
· France threatens to veto Brexit agreement; negotiating teams expect to reach an agreement in the following days.
· OPEC+ still has not reached a consensus regarding production extensions.
· Economic indicators: Jobless claims fell to 712 thousand in the US.
Leading economic indicators published by the IMEF show that the Mexican economy recovered at a weak pace in November. Manufacturing indicators slowed down to 48.5 (vs 49.6 prev.) and remained in contraction for the 18th consecutive month. Meanwhile, services improved (49.5 vs 48 prev.), however, remained in contraction for the tenth consecutive month. The economy`s trend continues to show recovery, however, it`s weakening. New orders and employment are both slowing down in the manufacturing sector, while most components showed improvement in the services sector. According to the IMEF, the recovery will be slower as time moves forward and will remain fragile and asymmetric.
Chair of the Federal Reserve Jerome Powell reiterated the central bank`s commitment to back the economy until the crisis has passed. In his half-yearly testimony before Congress, Powell affirmed that his priority continues to be keeping interest rates low and maintaining the quantitative easing program in place until the economy has completely surpassed the risks that the pandemic has raised against economic activity. He reiterated that the news regarding the vaccines is positive in the medium term, however, American families and businesses will continue to require aid during what will be a complicated winter as uncertainty remains high in light of the virus`s second wave. As for possible future changes in the asset purchasing program, Powell gave no signs that there will be considerable changes in the short term. The possibility of the FED increasing its purchasing program in its next meeting scheduled to take place on December 15th-16th has been speculated among markets. However, the FED has not confirmed this in any of its statements.