The Day at a Glance | March 26 2024

The Top

*The Financial Stability Council updates its risk assessment for 1Q24.

*New orders for manufactured durable goods in the U.S. increased by 1.4% m/m in February 2024, surpassing market expectations of a 1.1% increase (-6.9% prev.).

*China initiates a dispute at the WTO against U.S. subsidies to protect its electric vehicle industry.

*The UN Security Council demands an immediate ceasefire in Gaza following the abstention of the United States. 

Economic environment

The Financial Stability Council (CESF) updates its risk assessment, highlighting monetary policy and global geopolitical events as the main risks. In its review for the first quarter of the year, the CESF emphasized that the global growth outlook for 2024 has improved in recent months, anticipating a pace of expansion similar to that of 2023. However, risks to global financial stability persist due to the possibility of prolonged inflationary pressures, tighter-than-initially-expected financial conditions, and escalating geopolitical tensions. In Mexico, financial markets have generally remained stable; the peso continues to show strength, and short-term interest rates have decreased slightly, while moderate increases are observed in the middle and long end of the yield curve. National economic activity achieved robust growth during 2023. For 2024, information suggests that  dynamism of activity has increased during 1Q24, although there is still an expectation of some weakening for the year compared to the previous one. Overall, the Mexican financial system continues showing the capacity to absorb shocks to maintain its solvency and profitability.

Markets and companies

Global markets exhibit mostly positive sentiment. US stock indices closed the previous day with losses. This morning, markets started the day in positive territory: Dow +0.06%, S&P +0.31%, and Nasdaq +0.42%. Furthermore, the indices are on track for their fifth consecutive month of gains. In Europe, markets are showing gains, with the Euro Stoxx up +0.42%, airline stocks gaining 1%, while mining stocks lost 0.46%. In Japan, the Nikkei 225 closed with a slight decline of -0.04%, standing at 40,398.03, and China +0.17%. In Mexico, the IPC opened lower, standing at 56,553 points (-0.03%). Oil registered a decrease in its price as conflicts in Eastern Europe and the Middle East disrupt supplies, settling at $81.85 per barrel (-0.10%). Natural gas is up (+1.20%). Meanwhile, metals are mixed, with gold prices up +0.5% supported by a weaker dollar, silver -0.3%, and copper -0.2%. Finally, cryptocurrencies are declining.

The exchange rate fluctuated during the early hours of today, reaching a low of 16.66 and a high of 16.71, currently trading at 16.68

Corporate news

*Grocery delivery service Ocado rose by 8% after reporting a 10.6% increase in revenue in its retail division during the first quarter.

*Krispy Kreme shares rose by 18% before the market opened, following an announcement that the donut franchise will expand its partnership with McDonald’s this year.

*Shares of Donald Trump’s social media company increased by over 39% minutes after starting trading on the stock market under the symbol DJT.

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