The Day at a Glance | June 11 2024

The Top

• In Mexico, industrial production logged mixed figures in April.

• In May, 4,242 heavy vehicles were sold at retail and 3,462 at wholesale, logging -8.2% and -28.7% rate decreases, respectively.

• Hamas accepted a UN resolution supporting a plan to end the war with Israel in Gaza and is willing to negotiate the details, a senior Palestinian militant group official said on Tuesday in what the US Secretary of State called “a hopeful sign.”

• The European Central Bank should wait until uncertainty subsides before making its next interest rate move, ECB Chief Economist Philip Lane said on Tuesday.

• The snap parliamentary elections in France are bad for the country’s credit rating, Moody’s rating agency warned.

• Oil prices remained stable on Tuesday as investors awaited inflation data from the US and China, as well as the outcome of the Federal Reserve’s monetary policy meeting to see how price changes might affect demand.

• The Dow Jones index is down due to JPMorgan Chase, Amgen, and American Express. 

Economic Environment

In Mexico, industrial production logged mixed figures in April. April´s figures recorded an annual 5.1% rate of growth in industrial activity in our country, according to original figures, surpassing the 4.4% market estimate and the -3.0% decline recorded in March. Three of the four components logged annual expansions, the most significant being construction, which increased by a substantial 16.1%, followed by manufacturing at 3.8% and the generation and distribution of water, gas, and electricity at 3.7%. Lastly, mining decreased by -4.1% year-on-year. Thus, industrial production in Mexico logged a 1.9% accumulated rate of growth in the January-April period (year-on-year). On a monthly rate, industrial production in our country fell by -0.5% in April, according to seasonally adjusted figures. Overall, April´s figures show that industrial activity continues to record ups and downs; moreover, the manufacturing sector has shown a lateral trend since mid-2022, which possibly mirror´s the US manufacturing sector´s stagnation.

Markets and Companies

Global markets carry mixed sentiment. Main US indices closed the previous day with gains. Today, they are in negative territory as the Federal Reserve began a two-day meeting, which will conclude on Wednesday with a monetary policy decision, followed by a press conference with Federal Reserve Chairman Jerome Powell. The Dow is down -0.96% as JPMorgan Chase, Amgen, and American Express fell more than -1.0%. The S&P is down -0.37% and the Nasdaq -0.41%. Meanwhile, the 10-year Treasury yield stands at 4.45%. In Europe, the Euro Stoxx index initially shrugged off Monday’s negative sentiment but fell again by -1.06% with all sectors in the red and banks down -1.85%. In Asia, Japan’s Nikkei 225 index rose by +0.25% to close at 39,134.8 points. The Bank of Japan’s rate decision will be announced on Friday, while May´s inflation data for China and India will be released on Wednesday. China ended slightly lower at 3,028.0 (-0.76%). In Mexico, the IPC is up and stands at 53,162.1 points (+0.07%). Oil prices rose by more than +2.0% yesterday and have now recovered most of last week’s losses. Today, the price is at $77.46 per barrel. Meanwhile, gold rose by +0.1% to $2,314 per ounce. Silver is trading at $29.21 per ounce (-1.8%) and copper at $448.20 per pound (-1.4%). Lastly, cryptocurrencies are down.

After yesterday´s trading session, the exchange rate fluctuated between a low of 18.21 and a high of 18.55, currently trading at 18.38.

The Wildlife Habitat Council (WHC) awarded four Cemexprojects in the United States and Mexico for their excellence in corporate conservation in the categories of Awareness and Community Engagement, Desert, Formal Learning, and Training. The awards were announced during the WHC Conservation Conference in New Orleans, Louisiana. The recognized projects were:

o Environmental education for students at the “Limestone and Clay” site in Tamuín, Mexico.

o Desert habitat restoration at Cerro Jardín, Xoyatla, and Coayuca in Atotonilco, Mexico.

o Environmental training at Cemex’s regional office in Alabama, USA.

o Formal environmental education program at Cemex’squarrying operations in Center Hill, Florida, USA.

Corporate News

• General Motors rose by +1.7% after the company’s board approved a $6 billion share buyback program.

• DXC Technology, an information technology company, rose by +4.0% after Reuters reported a joint bid by Apollo Global and Kyndryl Holdings.