The Day at a Glance | March 27 2024

The Top

*Trade balance data in Mexico showed a 585 million dollar deficit in February 2024.

*The unemployment rate in Mexico stood at 2.5% in February 2024.

*Chinese President Xi Jinping met with American executives in Beijing due to declining investment.

*Japan’s finance minister said on Wednesday, that authorities could take “decisive measures” against the yen´s weakness after the currency fell to its lowest level in 34 years against the dollar.

*Oil fell by 1% as crude inventories increased in the US.

*The main U.S. stock indices are trading higher. 

Economic environment

In Mexico, the trade balance showed a 585 million dollar deficit in February 2024, compared to the deficit shown in February 2023 of 1,889 million dollars. Regarding exports, a balance of 50,721 million dollars was recorded, which is 13% higher than February 2023. This increase was mainly due to an annual expansion of 12.9% in non-oil exports; while oil exports increased by 15.7%. As for imports, the amount reached was 51,306 million dollars, which shows an increase of 9.7% compared to February 2023. By type of import, consumer goods, intermediate goods, and capital goods increased by 13.9%, 7.9%, and 18.9%, respectively. In the first two months of 2024, the trade balance showed a deficit of -4,899 million dollars, which is lower than the deficit of -5,995 million dollars reported in the same period of the previous year.

In Mexico, the unemployment rate stood at 2.5% in February 2024. According to INEGI, in February, the economically active population by its acronym PEA, which are those who worked plus those who carried out an activity to seek employment, stood at 60.9 million people, which is 917 thousand more than in February 2023, and equivalent to 60.2% of Mexican inhabitants over 15 years of age. The employed population stood at 59.4 million, an increase of 1.1 million compared to last year, mainly located in trade, transportation, communications, services, and construction. The underemployed, who have a job but decided to seek a second one, stood at 3.8 million people, representing 6.5% of the working population. Finally, the unemployed population stood at 1.5 million people, which is a rate of 2.5% compared to the PEA, which shows a historically low figure. Employment data reflects a tight labor market, suggesting that consumption could remain strong in the coming months.

Markets and companies

The main U.S. stock indices are trading higher, interrupting declines from the three previous sessions, amid profit-taking after the market reached new highs. For March, the stock market appears to be another month with gains. No significant economic data are expected for the market today. Tomorrow unemployment insurance claims, consumer confidence, and the third revision of the 2023 fourth-quarter United States GDP data will be released. On Friday, personal consumption expenditure inflation will be published. In Europe, markets showed mixed performance, a highlight was the increase in H&M retailer shares, after reporting better-than-expected results. The 10-year Treasury bond yield registered a slight retreat, standing at 4.22%, while the 2-year bond stood at 4.58%. In commodities, oil prices declined, with WTI at 81.11 dpb and Brent at 85.72 dpb, after the increase in U.S. crude inventories was reported. Gold maintains its upward trend and is trading at $2,207 per ounce. In Mexico, the IPC is trading higher, reaching 57,269.9 points. The peso-to-dollar exchange rate stands at 16.59 after closing at 16.64 yesterday.

Corporate news

*GameStop shares fell nearly 17% as the company reported a decline in revenue.

*The FDA approved the drug developed by Merck for the treatment of pulmonary hypertension.

*Krispy Kreme shares continued its rise as the company announced it reached an agreement to sell its products in McDonald’s branches.