The Day at a Glance | February 10 2025

El Día en Minutos
10 febrero, 2025, 2 semanas ago
257

The Top

• In China, consumer inflation reached its highest level in five months in January, while producer price deflation persisted.

• On Sunday, US President Donald Trump announced that he will impose new 25% tariffs on all steel and aluminum imports, in addition to existing tariffs on these metals.

• In January 2025, Mexico manufactured 312,257 cars (+1.7% YoY) and exported 219,414 units (-13.7% YoY) in the Mexican automotive market.

• Investor confidence in the Eurozone improved in February, reaching its highest level since July, according to a survey released on Monday, with Germany also benefiting from the rise in confidence.

• Japan’s current account surplus hit a record high last year, according to data from the Ministry of Finance published on Monday, driven by a weaker yen that boosted returns on foreign investments, comfortably offsetting the trade deficit.

• On Sunday, US President Donald Trump stated that he is committed to buying and controlling Gaza, although he may allow some Middle Eastern countries to participate in the reconstruction of certain war-affected areas.

• Oil prices rebounded on Monday despite ongoing concerns over a potential global trade war, following recent tariff plans by US President Donald Trump, this time targeting steel and aluminum.

Economic Environment

In China, consumer inflation reached its highest level in five months in January, while producer price deflation persisted. China’s annual consumer inflation rose by 0.5% YoY in January 2025, accelerating from 0.1% in December and surpassing the 0.4% estimate. On a monthly basis, it rose by 0.7%, reversing the stagnation logged in the previous month. Core inflation also increased to 0.6% YoY from 0.4%, driven by seasonal spending during the Lunar New Year, which raised transportation and entertainment prices. Regarding annual producer inflation, January´s reading set at-2.3%, marking the 28^th consecutive month in negative territory due to industrial overcapacity. Overall, consumer inflation in China accelerated in January to its highest level in five months, while producer price deflation persisted, reflecting mixed consumption and weak manufacturing activity. In this regard, although consumer inflation shows signs of recovery, weak manufacturing and new tariffs imposed by the US could limit growth; while Beijing maintains its growth target of 5% for 2025, with no immediate changes to its economic policy until the parliamentary session in March.

Markets and Companies

US futures are trending higher as investors prepare for a week packed with data and closely monitor reports that President Trump could announce a new round of tariffs. On Sunday, Trump told reporters that he plans to announce a 25% tariff on all steel and aluminum imports on Monday, according to Reuters.

In Europe, markets are trending upwards. The Stoxx 600 rose 0.4% at 12:32 p.m. London time, with most sectors in positive territory.

On the other hand, Asian markets closed mixed on Monday as rising trade tensions kept investors cautious.

In commodities, oil prices are rising. It is worth noting that last week, the market recorded its third consecutive weekly decline due to concerns about a global trade war.

In this context, gold prices rose on Monday, remaining near the record set in the previous session. And in Mexico, IPC futures posted upward movements (+0.81%).

Over the weekend, the exchange rate fluctuated between a low of 20.43 and a high of 20.63. It currently stands at 20.59.

Cemex announced that its CEO, Fernando González Olivieri, will retire after more than 35 years with the company. He will be succeeded by Jaime MuguiroDomínguez, current President of Cemex USA, who will take office on April 1^st, 2025.

Corporate News

• Shares of companies linked to steel and aluminum rose after President Donald Trump announced on Sunday his intention to impose 25% tariffs on these metals on Monday. Cleveland-Cliffs and Nucor gained around 7%, while other steel producers, such as Steel Dynamics and U.S. Steel, advanced more than 5% and 4%, respectively. Meanwhile, aluminum company Alcoa climbed more than 5%.

• Semtech plunged more than 28% after warning in an 8-K filing that net sales from its CopperEdge product line, used in active copper cables, are underperforming due to rack architecture changes. Semtech also noted that it does not expect a recovery during fiscal year 2026.