The Day at a Glance | September 4 2024

El Día en Minutos
4 septiembre, 2024, 2 meses ago
200

The Top

• Eurozone producer prices remained in deflationary territory in July.

• Today, the Bank of Canada will release its monetary policy announcement, in which a 25 basis point cut is expected.

• In June, the trade deficit in the US stood at $78.8 billion, a 7.9% m/m increase due to greaterimports of capital goods and industrial supplies amidst concerns of higher tariffs.

• New car sales in Mexico reached 127,684 units in August, a 2.1% increase compared to the same month of 2023.

• According to Reuters, OPEC+ is discussing a delay in the production increase planned for next month, as oil prices hit their lowest level in 9 months.

• The S&P 500 and Nasdaq are down after recording losses on Tuesday.

Economic Environment

Eurozone producer prices remained in deflationary territory in July. In July, Eurozone producer prices rose by 0.8% m/m, marking two consecutive months of increases. On an annual basis, producer prices fell by -2.1% in July, compared to the consensus estimate of -2.5%. Among the main components, deflation was recorded in energy (-6.9% y/y) and intermediate goods (-1.2% y/y), while capital goods (1.4%), durable consumer goods (0.3%), and non-durable goods (1.0%) logged growth. Excluding energy-relatedgoods, producer prices recorded changes of -0.1% month-over-month and 0.2% year-over-year. The block´s main economies remained in deflationary territory on a year-over-year basis in July: Germany at -1.1% (prev. -1.9%), Spain at -1.4% (prev. -3.2%), France at -5.4% (prev. -5.9%), and Italy at -1.6% (prev. -3.5%). July´s producer price figures suggest that cost pressures are increasing due to a rebound in energy prices, while the other components slightly decreased. The European Central Bank´s next monetary policy announcement is scheduled for September 12^th, and a 25 basis point rate cut is expected.

Markets and Companies

The S&P 500 and Nasdaq are down after recording losses on Tuesday. US stocks are down following the worst day for the S&P 500 since the early August sell-off. Notably, Nvidiashares dropped -1.4% in premarket trading after a Bloomberg report indicated that the US Department of Justice had sent subpoenas to the chip manufacturer. This came after Nvidia fell more than 9% during Tuesday’s trading session. In Europe, the region´s main indices were down, following Wall Street’s losses. The Stoxx 600 was down 1% at 2:00 p.m. in London, with most sectors in the red. Tech stocks dropped 3.5%, while travel stocks retreated nearly 2%. Similarly, Asia-Pacific markets fell on Wednesday, led by Japan’s Nikkei 225 and Taiwan’s Taiexafter US tech stocks slumped and weak US economic data sparked recession fears. Japan’s Nikkei 225 dropped 4.24% to close at 37,047.61, while the Topix fell 3.65% to 2,633.49. Both indices recorded their worst single-day loss since the August 5^th sell-off. Metals and cryptocurrencies are mostly down. In Mexico, the IPC is down -0.10% and stands at 51,536 points.

The exchange rate is at 19.78 after closing at 19.80 yesterday.

Funo announced the acquisition of 100% of CKD Helios for a total amount of $7 billion pesos, which will be paid in three installments over the next 12 months.

Cemex expands its circularity business with an acquisition in Berlin. Cemex has acquired a majority stake in RC-Baustoffe Berlin GmbH & Co. KG, a recycling company of the Heim Group, as part of its strategy to strengthen its circularity business. This company specializes in the processing of construction, demolition, and excavation materials. The integration will allow for the processing of up to 400,000 tons of material annually, which will be reused as aggregates in concrete production. In 2023, Regenerarecovered more than 9 million tons of construction materials, with a goal of reaching over 14 million tons annually by 2030.

Corporate News

• Dick’s Sporting Goods shares fell about 1% despite its second-quarter results surpassing Wall Street estimates.

• Dollar Tree shares plunged nearly 11% after the dollar store missed second-quarter revenue estimates and slashed its full-year forecast.