The Day at a Glance | November 11 2024

The Top

• In Mexico, industrial production in September logged a slight improvement in construction and manufacturing.

• Mexico’s consumer confidence index reached 49.4 points in October 2024, its highest level since the series began in 2001, according to seasonally adjusted figures.

• In October, China’s consumer prices rose at their slowest pace in four months (0.3% y/y), while producer price deflation deepened (-2.8% vs. prior -2.9% y/y) amid Beijing’s increased stimulus efforts to boost the economy.

• Opinions are divided regarding the timing of the next interest rate hike by the Bank of Japan. 

• German lawmakers canceled a critical budget planning meeting on Monday, as parties continue to debate when to call elections to end a period of political uncertainty after Chancellor Olaf Scholz’scoalition dissolved last week.

• Oil prices fell around 2% on Monday after China’s stimulus plan disappointed investors, while the US dollar strengthened.

Economic Environment

In Mexico, industrial production in September logged a slight improvement in construction and manufacturing. September´s figures pointed to an annual -0.4% decline in industrial activity, based on original data. Two of the four components recorded annual expansions: water and gas generation and distribution (+1.2%) and manufacturing (+0.8%), while mining and construction fell by -4.5% and -2.3%, respectively. Consequently, Mexico’s industrial production increased by 1.0% for the January – Septemberperiod, according to unadjusted figures compared to the same period last year. On a monthly basis, industrial production in the country rose by 0.6% in September, based on seasonally adjusted figures. Manufacturing and construction posted monthly gains of 1.0% and 0.7%, respectively, while mining and water and gas generation and distribution decreased by -1.3% and -1.1%, respectively, based on seasonally adjusted figures. September´s figures pointed to marginal improvements in the two most important sectors, although annual comparisons still reflect weakness. Looking ahead, the outlook remains uncertain due to the internal economic slowdown and the new US administration’s protectionist agenda.

Markets and Companies

US futures are trending higher after the S&P 500´s best week so far this year. Wall Street is looking to extend last week’s rally, following record-high closes for the three major indices. Much of the gains occurred on Wednesday, when the Dow surged by 1,500 points after Donald Trump’s victory. Investors also closely monitored the Fed’s policy announcement on Thursday. In Europe, markets are starting the week on a positive note, with the Stoxx 600 up 1.3% around 1:00 p.m. in London, as most sectors traded in the green. Meanwhile, Asian markets mostly posted gains, despite China’s latest stimulus measures falling short of expectations and October inflation data coming in lower than anticipated.

In commodities, oil prices are declining as China’s stimulus plan disappointed investors seeking increased fuel demand from the world’s second-largest oil consumer, while the US dollar strengthens. Metals are down, and cryptocurrenciesare mostly up. In Mexico, IPyC futures are trending higher (+0.37%), trading at 52,035 points.

Over the weekend, the exchange rate fluctuated between 20.14 and 20.54 and is currently trading at 20.49.

On Friday, América Móvil reported that its shareholders approved a 15 billion peso increase in the share buyback fund for April 2024 to April 2025 period, along with the cancellation of all treasury shares acquired through the buyback program (1.975 billion) and a proportional reduction in its share capital.

Corporate News

• Tesla shares rose 7%, following a 29% increase last week.

• Cryptocurrency-related stocks are up as Bitcoinsurpassed $82,000, reaching new all-time highs, with Wall Street betting that a Trump administration would be more favorable for the cryptocurrency industry.