The Day at a Glance | November 30 2020

The Top

· China grows more than expected in November.

· OPEC+ will start formal meetings today to decide on the extension of production cuts.

· FDI in Mexico`s automobile sector recorded a negative balance of 389 million dollars in the 3Q20 despite the USMCA.

Economic environment

Leading economic activity indicators in China surprised to the upside during November, pointing towards a solid recovery in the world`s second largest economy that is improving towards the end of the year. Manufacturing increased to 52.1 in November, its highest level since September 2017 and boosted by an increase in exports prior to Christmas and New Year holidays. Services increased to 56.4, which shows recovery in domestic consumption. The country`s success in controlling the virus maintains expectations of seeing a recovery in the domestic market towards 2021, contrary to what is seen in the US and Europe, where new slowdowns are expected; and it`s possible that the virus`s spread and the slowdown in the rest of the world will affect Chinese exports in the following months, which will make its domestic market the main driver for expansion towards 2021. The firm recovery seen up to now has led the People`s Bank of China to recently give signs that it will gradually remove monetary stimuli carried out at the beginning of the year to back the economy.