The Day at a Glance | May 23 2025

• In Mexico, Foreign Direct Investment (FDI) totaled $21.373 billion between January and March 2025, marking a new record high for a first quarter since records began.
• Mexico’s trade balance logged a deficit worth $88 million in April, compared to a $3.442 billion surplus reported a year earlier. April’s figure signaled a 5.8% increase in exports and a 1.2% decline in imports.
• U.S. President Donald Trump warned he will impose a 50% tariff on imports from the European block if a favorable trade agreement isn’t reached by June 1st.
• U.S. and Chinese officials continue to keep communication channels open despite their dispute over semiconductor technology. Both nations aim to avoid further escalation in the ongoing trade confrontation.
• Finance ministers and central bank governors from the Group of Seven democratic nations set aside their differences on Thursday and pledged to address the “excessive imbalances” in the global economy. They also signaled they could expand sanctions against Russia.

Economic Outlook

In Mexico, Foreign Direct Investment totaled $21.373 billion between January and March 2025, marking a new record high for a first quarter since records began. This figure entails a 5.4% annual increase compared to the $20.313 billion reported in 1Q24, according to preliminary data from the Economy Ministry. Additionally, new investments rose 165% year-over-year. By sector, 43% of FDI was directed to manufacturing, particularly in transportation equipment, beverages and tobacco, food processing, chemicals, plastics and rubber, computing equipment, and electricity generation. The financial, mining, retail, and construction sectors also stood out. In terms of origin, the U.S. accounted for 38.7% of total inflows, followed by Spain (15.0%), the Netherlands (8.3%), Australia (5.7%), and Germany (3.7%). Geographically, FDI was directed to Mexico City (55%), Nuevo León (13%), State of Mexico (9%), Baja California (4%), and Guanajuato (3%). Overall, the figures are positive, especially in a context in which Mexico was at the center of trade tensions from January to March. The market consensus estimates that the country could attract $33.850 billion in foreign investment this year.

Markets and Stocks

In the United States, markets traded in negative territory following a new shift in President Trump’s trade policy, as he announced a 25% tariff on iPhones manufactured outside the U.S. and proposed a general 50% tariff on goods from the European block.

In Europe, stock markets declined, led by the banking and automotive sectors, amidst concerns over worsening trade relations with the U.S.

Lastly, in Asia, markets closed with mixed figures.

In the commodities market, oil was heading for its fourth consecutive session of losses and was on track to close the week in the red amidst expectations of a further increase in OPEC+ production in July. Meanwhile, gold rebounded to $3,345 per ounce, posting a weekly gain.

In fixed income, Treasury yields fell after the tariff announcements. The 10-year yield dropped to 4.50%, while the 2-year yield declined to 3.95%.

As for the local market, the IPC was trading lower, while the exchange rate hovered around 19.37 pesos per dollar, compared to 19.32 yesterday at market close.

Corporate News

• Apple shares declined after Donald Trump threatened to impose at least a 25% tariff on iPhones manufactured outside the U.S. Currently, most of the company’s production takes place in China, although Apple has begun transitioning to India. Estimates suggest that moving manufacturing to the U.S. could raise iPhone prices by up to $250.
• Shares in the nuclear sector rose following reports that Trump will sign executive orders to revive the U.S. nuclear industry, easing the approval process for new reactors and strengthening the local fuel supply chain. Companies such as Oklo, NuScale, Constellation Energy, and Cameco logged a surge in their stock prices.