The Day at a Glance | February 17 2025

The Top

• Russia announced it will meet with senior US officials on Tuesday to discuss ending the war in Ukraine.

• Germany’s economy contracted for the second consecutive year in 2024, marking its worst performance in two decades. With just days before Sunday’s general elections, the country is engaged in a heated debate over how to revive economic growth.

• Chinese President Xi Jinping held a rare meeting on Monday with top figures from the country’s tech sector, including Alibaba founder Jack Ma, in what sources say was an effort to boost confidence in the private sector.

• Bank of England Governor Andrew Bailey said in an interview published Monday that inflation is slowing, and an expected uptick in price growth later this year is unlikely to generate long-term inflationary pressures.

• Hawkish comments from the Bank of Japan and persistent inflation are pushing bond yields to multi-year highs and bringing forward expectations of rate hikes, challenging the view that rates would not rise significantly in an economy historically prone to deflation.

• Oil prices remained relatively unchanged on Monday as investors closely monitored progress toward a potential peace deal between Russia and Ukraine, which could ease sanctions affecting global supply flows.

Economic Environment

Russia announced it will meet with senior US officials on Tuesday to discuss ending the war in Ukraine. Moscow stated that Foreign Minister Sergey Lavrov will meet in Riyadh with top US officials, including Secretary of State Marco Rubio, to discuss ending the war in Ukraine and restoring US-Russia relations. Additionally, US National Security Advisor Mike Waltz and Middle East envoy Steve Witkoff will also attend. This meeting, one of the first high-level talks in years, serves as a prelude to a potential meeting between Presidents Trump and Putin. Meanwhile, Ukrainian President Volodymyr Zelensky rejected US-Russia talks without Kyiv’s participation, asserting that Ukraine must be involved in any negotiations regarding its future. In parallel, Rubio and Saudi Crown Prince Mohammed bin Salman will discuss Trump’s proposal to resettle Palestinians from Gaza in other Arab countries, a plan Riyadh has opposed, instead advocating for an alternative Arab proposal focused on reconstruction and a path toward the creation of a Palestinian state.

Markets and Companies

US markets are closed for Presidents’ Day. However, futures are trending higher after gains last week. On Friday, the S&P 500, Dow Jones, and Nasdaq posted weekly increases of 1.5%, 0.5%, and 2.6%, respectively.

In Europe, markets are also advancing. The Stoxx 600 is up 0.3% at 12:45 p.m. in London, driven by the strong performance of several defense sector companies.

Asia-Pacific markets traded higher on Monday as investors analyzed Japan’s fourth-quarter economic growth data and awaited a series of central bank decisions in the region this week.

In commodities, oil prices extended their decline for the fourth consecutive day amid expectations of a potential peace agreement between Russia and Ukraine, which could ease global supply restrictions.

Meanwhile, gold is gaining traction, boosted by a weaker dollar and uncertainty over new US tariff policies, rising to $2,897.20 per ounce.

In Mexico, IPC futures are trending higher (+0.81%). 

Over the weekend, the exchange rate fluctuated between a low of 20.30 and a high of 20.41. It´s currently at 20.34.

Corporate News

• On Friday, Roku shares surged 14.1% after reporting stronger-than-expected 4Q24 results. The company posted a loss of 24 cents per share on revenue of $1.2 billion, surpassing LSEG estimates of a 40-cent-per-share loss and $1.14 billion in sales.

• Airbnb shares jumped 14.5% after its 4Q24 results exceeded expectations. The company reported earnings of 73 cents per share on revenue of $2.48 billion, above LSEG forecasts of 58 cents per share and $2.42 billion in sales.