The Day at a Glance | March 1 2024

The Top

*The annual inflation rate in the Eurozone set at 2.6% in February 2024. 

*China’s manufacturing Purchasing Managers’ Index (PMI) set at 49.1 in February, below the 49.2 recorded the previous month. 

*The Eurozone´s unemployment rate set at 6.4% in January, slightly lower than December’s 6.5%. 

*The Chinese government approved a plan to stimulate investment and spending. 

*The U.S. Senate approved a bill to prevent a government shutdown. 

*Oil rises by 1% as markets await OPEC+ decision. 

*The main U.S. indices concluded another positive month, driven by the surge in artificial intelligence.

Economic environment

The annual inflation rate in the Eurozone was 2.6% in February 2024. February´s figure was 0.1 percentage points above market forecast but below January’s 2.8% year-on-year. By components, in February, food, alcoholic beverages, and tobacco showed inflation at 4.0% year-on-year, services at 3.9% year-on-year, non-energy industrial goods at 1.6%, and energy deflation at -3.7% year-on-year. The annual inflation rates of the block´s major economies decreased between January and February of this year. For example, in Germany, it dropped from 3.1% to 2.7%, in Spain from 3.5% to 2.9%, in France from 3.4% to 3.1%, and in Italy, it remained at 0.9%. The Eurozone´s inflation continues to decline, but certain components still have very high inflation rates, such as services. Next week bring a monetary policy announcement by the European Central Bank, with no expected cuts in interest rates.

Markets and companies

Global markets with positive sentiment. Futures for the major U.S. indices are trending upward. The Nasdaq reached a new closing record for the first time since November 2021, rising by nearly 1%, primarily due to an uptick in chip stocks. The S&P 500 also set a new record after an increase of approximately 0.5%. The Dow Jones advanced by 0.12%. These gains signal the conclusion of a successful February, marking the fourth consecutive positive month for each of the major averages. Meanwhile, the yield on the 10-year Treasury bond stands at 4.27%. European markets opened the new month on a positive note following a successful February, with a focus on evaluating inflation data from the Eurozone. Japan’s Nikkei 225 was on the brink of surpassing the 40,000 level, and Chinese markets saw an increase as mainland manufacturing data was digested. In Mexico, IPC futures continue to climb, reaching 55,732 points (+0.57%). Oil prices are on the rise as conflicts in Gaza add further complications, with the price currently at $79.82 per barrel. Gold prices are increasing, reflecting recent U.S. data indicating signs of a slowdown in inflation, with an ounce trading at $2,053. Silver is trading at $22.68, and copper at $383.70. Lastly, cryptocurrencies extended their gains, with Bitcoin and Ether closing their best-performing months since 2020 and 2022, respectively.

Following yesterday’s trading session, the exchange rate fluctuated between a low of 17.01 and a high of 17.05, currently trading at 17.04.

Livepol reported some changes in its organizational structure. Among the most significant, Graciano Guichard, who held the position of Chief Executive Officer, will assume the role of Chairman of the Board of Directors; Enrique Guijosa, the former Chief Financial Officer, will take on the role of CEO of the Group; and Gonzalo Gallegos will assume the position of Chief Financial Officer. Gonzalo Gallegos joined the Livepol team 12 years ago and has played roles in the Finance, Technology, and Commercial areas of the Group.

Corporate news

*Dell surged by 26% after reporting fourth-quarter earnings that surpassed analysts’ expectations.

*Advanced Micro Devices continued to rise amid excitement surrounding artificial intelligence, gaining 3.3%.

*New York Community Bank fell by around 30% after revealing issues with its internal controls and announcing a leadership change.