The Day at a Glance | January 5 2024

*In the US, December´s unemployment rate set at 3.7%, and the non-farm payroll increased to 216 thousand jobs. 

*In line with consensus estimates, consumer inflation in the Eurozone rebounded to 2.9% y/y in December (2.4% prev. y/y); producer inflation moderated its decline, changing from -9.4% y/y in November to -8.8% y/y in December (-8.6% e.).

*The upcoming elections in Taiwan next week pose challenges for the US regardless of who wins; although a victory for the ruling party is likely to exacerbate tensions with China.

*Shipping giant Maersk warns of major disruptions by diverting all its ships from the Red Sea.

*The United States and Europe are making a new diplomatic effort to halt the escalation of the war in Gaza.

Economic environment

In the United States, the unemployment rate set at 3.7% in December, and the non-farm payroll rebounded to 216 thousand jobs in the same period. Regarding the unemployment rate, the consensus expected a slight change to 3.8%. On the other hand, the non-farm payroll surprised to the upside, as the market estimated a 175 thousand jobs increase. October and November´s joint non-farm payroll were revised down by 71 thousand jobs. On the other hand, wages rebounded at an annual rate of 4.1% in December, higher than the 4.0% recorded in November and setting above the consensus´s forecast of 3.9%. In summary, December´s data suggests that the labor market remains very strong, and cost pressures coming from wages are still present.

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