The Day at a Glance | January 20 2025

The Top

• Two key events this week: the inauguration of Donald Trump and the monetary policy announcement by the Bank of Japan.

• China kept its benchmark interest rates unchanged for the third consecutive month, as widely expected, since the weakness of the Yuan has limited Beijing’s efforts to ease monetary policy.

• Mexico and the European Union finalized the modernization of their Free Trade Agreement. Initial discussions for this treaty began in 2016.

• The ECB risks damaging its credibility if it lowers interest rates while inflation is rising faster than expected, even if temporarily, warned ECB monetary policy official Robert Holzmann.

• The World Economic Forum in Davos, Switzerland, begins today, where government representatives, international organizations, and business leaders will gather.

• Oil prices remained stable on Monday as investors await the inauguration of U.S. President-elect Donald Trump, hoping for greater clarity on his policy agenda, including his plans to end the war between Russia and Ukraine.

Economic Environment

Two key events this week: the inauguration of Donald Trump and the monetary policy announcement by the Bank of Japan. Today, bond and equity markets in the USwill be closed for the Martin Luther King Jr. holiday. However, global investors will be focused on the inauguration of Donald Trump, who will become the 47^thPresident of the United States of America. The inauguration will take place at 12:00 PM Eastern Time, which is 11:00 AM Central Time in Mexico City. Investor attention may focus on the proposals Trump made during his campaign, as well as the speed and scope of their implementation.Additionally, this week will feature the monetary policy announcement by the Bank of Japan. A possible increase in interest rates is not ruled out. However, members of the Bank’s governing board have indicated that it will depend on the level of market volatility at that time.

Markets and Companies

US futures are trending higher. In the early hours of his administration, Trump is expected to sign dozens of presidential executive actions. Trump has also pledged to dismantle many of Joe Biden’s renewable energy initiatives, including those passed by Congress in the historic Inflation Reduction Act of 2022.

In Europe, markets are trading lower ahead of the inauguration of US President-elect Donald Trump. The Stoxx 600 index was down 0.15% at 1:10 p.m. London time, with most sectors in negative territory.

Meanwhile, Asian markets were up on Monday as investors await greater clarity on the policies of the new USadministration.

In commodities, oil posted its fourth consecutive week of gains on Friday, with recent US sanctions on Russian energy trade intensifying expectations of supply disruptions. However, oil is trending lower today.

Metals and cryptocurrencies are logging mixed figures. In Mexico, IPC futures are posting gains.

Over the weekend, the exchange rate fluctuated between a low of 20.53 and a high of 20.85. It is currently at 20.55.

Corporate News

• Bitcoin reached a new record, surpassing $109,000, as investors celebrated Trump’s inauguration and meme coins.

• Intel shares rose more than 9% as the company continues to be the subject of speculation over a potential acquisition following the departure of its CEO in December.