The Day at a Glance | June 3 2024

The Top

• In Mexico, Claudia Sheinbaum won the country´s presidential election with a vote share of between 58.3% and 60.7%, according to the INE’s quick count.

• Later today, May´s manufacturing ISM index will be released; it´s expected to set at 49.5 points.

• This week, the European Central Bank will have its monetary policy decision; it´s expected to carry out a 25 basis point cut in its reference rates. It will be interesting to see whether or not the ECB opens the door to a rate-cutting cycle.

• According to private business surveys, global industrial activity showed signs of recovery in May due to a smaller contraction in the Eurozone and a rebound in most of the largest Asian economies.

• Oil prices fell on Monday as investors digested the complex agreement negotiated by the OPEC+ group to extend various levels of production cuts, many of them until 2025.

• The S&P 500 is rising slightly on Monday as investors try to extend May’s strong momentum into June.

Economic Environment

In Mexico, Claudia Sheinbaum won the presidential election with a vote share of between 58.3% and 60.7%, according to the INE’s quick count. At the end of the electoral day (Sunday, June 2^nd), the National Electoral Institute (INE for its acronym in Spanish) announced that Claudia Sheinbaum (Morena-PVEM-PT) will be Mexico´s next president, after obtaining an average majority of nearly 60% in the elections, followed by Xochitl Gálvez (PRI-PAN-PRD) with about 28% and Jorge Maynez with just over 10%, according to quick count figures. Additionally, the INE revealed that the same count shows a decisive victory for Morena and its allies to secure a two-thirds majority in both the House of Deputies and the Senate, with a total of between 346-380 seats out of 500 and between 77-88 out of 128, respectively. Regarding the leadership of Mexico City´s government, the Morena coalition also won with a share of between 49.0% and 52.8%, followed by PRI-PAN-PRD with between 37.2% and 40.5%. As today´s trading session started, the exchange rate opened at 17.50 pesos per dollar, above the 17 pesos logged at last week’s close, reaching a maximum rate of 17.71 pesos per dollar during Monday´s early morning.

Markets and Companies

The S&P 500 is rising slightly on Monday as investors tryto extend May’s strong momentum into June. Wall Street is coming off a strong month, with all three major U.S. indices recording their sixth positive month in seven; the Nasdaq rose 6.9%, its best month since November 2023. In Europe, markets are up, extending last week’s rally, as investors await the European Central Bank’s decision later this week. The Stoxx 600 was up 0.65% at 1:50 p.m. London time, with almost all sectors in the green. Construction stocks led the gains, rising 1.74%, while the healthcare sector fell -0.55%. In Asia, Japan’s Nikkei closed 1.13% higher to set at 38,923, and Hong Kong’s Hang Seng gained 1.77%. Regarding commodities, oil prices recorded slight changes after the extension of OPEC+ production cuts. Metals and cryptocurrencies are up, and in Mexico, the IPC is down -0.27%, standing at 55,032 points. 

Over the weekend, the exchange rate fluctuated between a low of 16.94 and a high of 17.62, currently trading at 17.57.

Corporate News

• GameStop soared more than 77% due to speculation that Keith Gill, known online as Roaring Kitty, has a stake in the company worth $116 million; AMC shares rose approximately 25% due to renewed enthusiasm for meme stocks.

• Shares of medical waste disposal company Stericyclejumped 16% after Waste Management agreed to buy the company for $7.2 billion. Waste Management fell 1.5%.