The Day at a Glance | March 5 2024

The Top

*Donald Trump will attempt to deliver the final blow to his sole rival, Nikki Haley, in the “Super Tuesday” for the Republican presidential nomination. 

*China promises to transform the economy and sets an ambitious growth target. 

*Producer inflation in the Eurozone decreased by -8.6% YoY in January 2024, marking a moderation compared to the previous month (-10.7% prev.).

*U.S.: The ISM services for February will be released later. The market expectation is 52.9 points, compared to 53.4 in January. 

*In Mexico, the Citibanamex survey will be published, with the focus on the expectation of the first interest rate cut by Banxico. 

*According to the NOAA, the world is on the brink of the fourth massive coral reef bleaching event. 

*The three main U.S. indices declined after Monday’s market rebound, with utility companies standing out. 

Economic environment

Donald Trump will attempt to deliver the final blow to his sole rival, Nikki Haley, on “Super Tuesday,” as 15 states hold Republican contests on the most crucial voting day of the primary election season. The former president has dominated the Republican primaries from the start despite facing legal proceedings and has swept through almost all except Columbia. While Trump cannot win enough delegates on Tuesday to formally secure the nomination, another dominant performance would essentially eliminate any doubt or uncertainty. In total, Tuesday’s elections will award more than a third of Republican delegates and over 70% of the number needed to secure the nomination.

Chinese Prime Minister Li Qiang announced on Tuesday an ambitious economic growth target of around 5% for 2024, pledging measures to transform the country’s development model and mitigate risks in the real estate sector and indebted cities. Presenting his first report at the annual session of the National People’s Congress, China’s official parliament, Li also indicated increased defense spending while toughening the rhetoric on Taiwan. The growth target is similar to last year’s, which will be more challenging to achieve as the post-Covid recovery lags behind. The prime minister mentioned that reaching the goal won’t be easy; a proactive fiscal policy and prudent monetary policy will be used to boost employment and income. Beijing emphasizes prioritizing growth over any reform.

Markets and companies

Global markets show mixed sentiment, with futures for major U.S. indices down. Dow Jones -0.16%, Nasdaq -0.31%, S&P -0.15%. Meanwhile, the yield on the 10-year Treasury bond is at 4.16%. European markets are mixed as they struggle to find positive momentum ahead of the European Central Bank meeting later this week. China reached over three-month highs after setting its economic growth target at “around 5%” for 2024 during its “Two Sessions” meeting. Japan’s Nikkei 225 slightly declined but remained above the 40,000 mark, closing at 40,097.63. In Mexico, IPC futures continue to rise, reaching $55,738 points. Oil futures fell for the second consecutive day as China’s promise to boost economic growth and OPEC+ production cuts failed to lift prices. The price stands at $77.62 per barrel. Gold prices are heading towards all-time highs, driven by growing expectations that the Federal Reserve will make its first interest rate cut in June. The ounce is trading at $2,132 per troy ounce. Silver is trading at $24.10 per troy ounce, and copper at $384.70 per pound. Lastly, Bitcoin approaches its all-time high of $68,982.20, set in November 2021. Bitcoin increased by approximately 21% last week, but the trend eased over the weekend.

After yesterday’s trading session, the exchange rate fluctuated between a minimum of 16.94 and a maximum of 16.98, currently trading at 16.95

Corporate news

*Target experienced a significant increase of almost 8%, driven by a solid fourth-quarter report that surpassed analysts’ expectations.

*Apple recorded a 2.3% decline linked to a Counterpoint Research report indicating a 24% drop in iPhone sales in China during the first six weeks of 2024 compared to the previous year.

*Tesla faced a 2.5% decline due to production interruption at the Berlin plant. The pause was caused by a power outage resulting from a nearby fire, initially suspected to be arson.

*Advanced Micro Devices experienced a nearly 2% decline after U.S. regulators blocked the sale of its powerful artificial intelligence chips to China.