The Day at a Glance | May 10 2024

The Top

• In Mexico, industrial production increased during 1Q24 despite a decline logged in March. 

• In March, 4.1 million international tourists entered the country. 

• The ECB´s minutes show that it´s preparing for an interest rate cut in its June meeting. 

• The British economy grew at its fastest pace in almost three years during 1Q24, ending the technical recession it entered in the second half of last year. 

• The Brent reference price remained above $84 per barrel on Friday amidst growing oil demand and increased pressure stemming from the Middle East conflict. 

Economic Environment

In Mexico, industrial production increased during 1Q24 despite a decline in March. March´s figures recorded an annual -3.0% decrease in our country’s industrial activity, according to original figures. This figure set slightly below the -2.7% y/y forecasted by market analysts after starting the year on the right foot with growth of 3.3% in February and 2.6% in January. Thus, industrial production in Mexico increased by 0.9% during 1Q24. Two of the four components recorded annual expansions, with construction being the most significant, as it increased 5.7%. However, this growth was more than offset by declines in manufacturing industries, and water, gas, and electricity generation and distribution by -5.0% and -5.5%, respectively. Lastly, mining increased marginally by 0.1% y/y. On a monthly basis, industrial production in Mexico grew by 0.6% in March, rebounding after a slight contraction was logged in February (-0.1%). Overall, March´s figures show that industrial activity slowed downconsiderably at the end of the first quarter. 

Markets and Companies

Main US stock indices are trading positively, which will likely lead to the week closing in the green. The market has reacted positively to the Federal Reserve´s message – that interest rates have reached a peak, although short-term cuts are not expected. In this regard, today we await statements from various Federal Reserve members: Lorie Logan from Dallas, Neel Kashkari from Minneapolis, and AustanGoolsbee from Chicago. Additionally, the corporate earnings season for the first quarter has helped boost the market. In Europe, stock markets were also trading higher after it was revealed that UK GDP grew more than expected in 1Q24.

In the bond market, the yield on the 10-year Treasury bond increased, reaching 4.48%.

In commodities, oil prices are up amidst signs of increased demand in the US and China. Gold continues its upward trend, reaching $2,367.6 per ounce.

In Mexico, the IPC is trading higher, standing at 56,925.6 points.

The peso-to-dollar exchange rate is at 16.7494, after closing at 16.7847 yesterday.

Yesterday, Cemex and the Mission Possible Partnership (MPP) announced their collaboration with the Bezos Earth Fund to carry out an analysis of the decarbonization potential at Cemex’s Balcones cement plant in Texas. This analysis aims to accelerate Cemex’scommitment to achieving net zero CO2 emissions by the year 2050. MPP is assisting Cemex in evaluating the use of alternative fuels, incorporating materials with a lower carbon footprint, carbon capture and storage, and the utilization of captured carbon to produce synthetic fuels, chemicals, or construction materials.

Corporate News

• Novavax shares rose after announcing it signed an agreement to commercialize its Covid vaccine with Sanofi. 

• Tesla´s CEO stated that they expect to invest around $500 million in their vehicle charging station network.

• Zeekr, a Chinese electric vehicle producer, conducted its initial public offering on the New York market at $21 per share, raising a total of $441 million.