Chile’s main index closes up above 6,700 points, while technology stocks boost Wall Street.

Posted on May 20, 2024 by Ignacio Teson

Various factors allowed the stock markets of Chile and the United States to close higher on Monday, with attention focused on statements from Federal Reserve members and Nvidia’s results, the latter being a key name behind the current U.S. stock rally.

Chile’s S&P IPSA rose 0.77% to 6,710.41 points. After dividend adjustments, Vapores surged 7.36%, leading both in performance and in traded amounts. High-weighted stocks such as Cencosud (2.47%), SQM-B (1.97%), and Falabella (1.11%) also populated the IPSA’s list of gains.

All this happened on the eve of Tuesday’s May 21st holiday for Navy Day in Chile.

With the closing bell on Wall Street, the Nasdaq Composite advanced 0.66% to new all-time highs, allowing the S&P 500 (0.09%) to surpass its record set last Wednesday by a fraction. On the other hand, the Dow Jones fell 0.49%.

Market participants were attentive to new words from the Fed. “The inflation readings in the first quarter of this year were disappointing,” said Michael Barr, Fed vice chairman of supervision. “It is too early to know if the recent slowing of the disinflation process will be lasting,” said Fed vice chairman Philip Jefferson.

[[SPX-graph]]

While the U.S. stock market abandoned its morning highs and the S&P even recorded a loss during the afternoon, the technology sector kept the main stock index afloat.

Traders have their eyes on earnings season. This Wednesday, Nvidia’s (2.49%) results will be released, the chip manufacturer that has positioned itself as the most recent star among high-cap technology companies on Wall Street.

The President of Spain Considers Taking the Conflict with Milei to the European Union

Posted on May 20, 2024 by Ignacio Teson

Pedro Sánchez is considering involving the European Union in the tension with his Argentine counterpart after Milei accused his wife of corruption.

The President of Spain, Pedro Sánchez, is considering bringing the conflict with Argentine President Javier Milei to the European Union (EU), escalating tensions between the leaders after the libertarian accused Begoña Gómez, the wife of the Spanish Prime Minister, of corruption. Spain is exploring the possibility of involving the EU in the conflict sparked by Milei. “A significant conflict with a particular country can trigger a bloc reaction in the European Union.

The escalation and lack of apology are leading the Spanish government to consider extending this and bringing it to the attention of the European Union,” said sources close to the matter.

Meanwhile, Sánchez responded to the remarks made by the Argentine president, criticizing him for not living up to the dignity of his office. During his participation in the CREO economic forum, the leader of the Spanish Socialist Workers’ Party (PSOE) demanded an apology from Milei and asserted that he is “fully aware that the person who spoke yesterday did not speak on behalf of the great Argentine people.”

President Javier Milei, in turn, launched an attack on Spanish President Pedro Sánchez and his wife, Begoña Gómez, whom he described as “corrupt.”

“They don’t know what kind of society and country socialism can produce and what kind of people entrenched in power and levels of abuse it can generate. Even if he has a corrupt wife, he hesitates and takes five days to think about it,” Milei said on Sunday during his speech at the Vox event at the Palacio de Vistalegre “Europa Viva 24.”

Economic Activity in Mexico Expanded by 0.1% in April

Posted on May 20, 2024 by Ignacio Teson

Economic activity in Mexico modestly rebounded in April, according to information from the National Institute of Statistics and Geography (Inegi).

The Timely Indicator of Economic Activity (IOAE), which provides monthly economic tracking, reported a 0.1% monthly expansion in April. This represents a modest rebound from the estimated 0.2% decline in March.

On an annual comparison, the economy expanded by 1.7%.

April’s monthly advance occurred despite the stagnation Inegi forecasts for secondary and tertiary activities, which remained unchanged from March.

Gabriela Siller, Director of Economic and Financial Analysis at Banco Base, noted that the April data indicates the possibility of continued economic stagnation into the second quarter of the year.

She also suggested that there might be a revision of the first quarter’s GDP, as the IOAE data for March was revised downward.

According to the preliminary GDP estimate, Mexico grew 0.2% quarterly in the first third of the year, with an annual growth rate of 2.0%.

The government, considered optimistic, projects that the economy will grow by 3.0% this year, the last year of President Andrés Manuel López Obrador’s administration.

“Based on the information we have observed, we feel that February and March might come in better,” said Gabriel Yorio, Deputy Finance Minister, last month. He also denied any signs of a moderation in the country’s growth, as well as any deviation from the government’s official economic growth projections.

The Mexican Peso Rises in Anticipation of Economic Data from Mexico and the US

Posted on May 20, 2024 by Ignacio Teson

This week, the release of local inflation figures for the first half of May and first-quarter GDP data is expected, along with the minutes from the most recent policy meetings of both the Bank of Mexico (Banxico) and the Federal Reserve.

The Mexican peso appreciated against the US dollar in the first session of this week. The local currency gained ground in a market that is preparing to receive important economic data from both Mexico and the United States.

The exchange rate closed the day at 16.5517 pesos per dollar, according to data from Banxico. With an official closing rate of 16.6044 units on Friday, this represented a gain for the peso of 5.27 cents or 0.32 percent.

[[USD/MXN-graph]]

The dollar’s price fluctuated within a range between a high of 16.6510 units and a low of 16.5491 pesos. The US Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against six major currencies, was up 0.16% at 104.62 units.

It will be an interesting week for economic events, with minutes from Banxico and the Fed, as well as economic activity and inflation in Mexico. The exchange rate is expected to fluctuate between 16.70 and 16.45 pesos per dollar. The week starts with a light agenda but with upward risks to energy and agricultural prices.

USD Ends the End Uncertain on Mixed FED Rhetoric

Posted on May 20, 2024 by Skerdian Meta

Today there wasn’t much on the economic calendar, but there have been many FED speakers, who have left the USD in a no man’s land, as their comments continue to show uncertainty, as if they are waiting for instructions from higher up to start cutting interest rates and let the economy flow. Continue reading “USD Ends the End Uncertain on Mixed FED Rhetoric” →

Rate Cut Odds for the FED, ECB, BOE, RBA, RBNZ, BOJ, BOC

Posted on May 20, 2024May 20, 2024 by Skerdian Meta

The market expectations for FED rate cuts have been declining this year, helping the USD in Q1, but it has reversed lower in Q2, so what are the expectations for most major central banks this year? During Q1, it appeared like the USD was the currency to turn to, as US inflation seemed more persistent, and the US economy fared significantly better than the rest of developed economies, making it essentially the only currency to turn to, as all major currencies had nothing going for them.

This week we have the RBNZ meeting and the FOMC minutes

Continue reading “Rate Cut Odds for the FED, ECB, BOE, RBA, RBNZ, BOJ, BOC” →

Mars Petcare Recalls Select PEDIGREE Dry Dog Food Sold By Walmart

Posted on May 20, 2024 by RTT Staff Writer

Mars Petcare US Inc. is recalling 44 lb. Bag of Pedigree Adult Complete Nutrition Grilled Steak & Vegetable Flavor Dry dog food citing the potential presence of loose metal pieces, according to the U.S. Food and Drug Administration.

The limited recall involves 315 bags of the dog food with Best By Date of March 4, 2025 and Lot Code 410B2TXT02. The impacted products were sold by Walmart in Arkansas, Louisiana, Oklahoma and Texas.

No other PEDIGREE or Mars Petcare US products are affected or being recalled.

There could be a health hazard to pets due to the potential presence of loose metal pieces in the bags. However, there have been no reports of pet injury or illness regarding these products.

The company urged purchasers to stop using it and contact its consumer care to initiate a return.

Mars Petcare US is working with Walmart in Arkansas, Louisiana, Oklahoma and Texas to ensure that the affected products are no longer sold and have been removed from inventory.

In recent recalls for animals, ADM Animal Nutrition, affiliated to food processing company Archer-Daniels-Midland Co. or ADM, in late March and in early April called back many lots of chicken, swine and rabbit feed products, due to elevated levels of magnesium, sodium, calcium and/or phosphorus.

In early April, Cargill’s animal nutrition business recalled Nutrena Country Feeds Meat bird 22% Crumble citing non-inclusion of Vitamin D.

For More Such Health News, visit rttnews.com

Mars Petcare Recalls Select PEDIGREE Dry Dog Food Sold By Walmart

Posted on May 20, 2024 by RTT Staff Writer

The limited recall involves 315 bags of the dog food with Best By Date of March 4, 2025 and Lot Code 410B2TXT02. The impacted products were sold by Walmart in Arkansas, Louisiana, Oklahoma and Texas.

No other PEDIGREE or Mars Petcare US products are affected or being recalled.

There could be a health hazard to pets due to the potential presence of loose metal pieces in the bags. However, there have been no reports of pet injury or illness regarding these products.

The company urged purchasers to stop using it and contact its consumer care to initiate a return.

Mars Petcare US is working with Walmart in Arkansas, Louisiana, Oklahoma and Texas to ensure that the affected products are no longer sold and have been removed from inventory.

In early April, Cargill’s animal nutrition business recalled Nutrena Country Feeds Meat bird 22% Crumble citing non-inclusion of Vitamin D.

For More Such Health News, visit rttnews.com

China Keeps Lending Rates Unchanged As Expected

Posted on May 20, 2024 by RTT Staff Writer

China central bank retained its benchmark lending rates as expected on Monday after the government rolled out measures to support the property market.

The People’s Bank of China left the one-year loan prime rate unchanged at 3.45 percent.

Likewise, the five-year LPR, the benchmark for mortgage rates, was maintained at 3.95 percent. The five-year LPR was last lowered by 5 basis points in February to support the property market.

The PBoC fixes the LPR monthly based on the submission of 18 designated banks. However, Beijing has influence over the fixing. The LPR replaced the traditional benchmark lending rate in August 2019.

The interest rate decision came in line with expectations as the medium-term lending facility, which acts as a guide to loan prime rates, was left unchanged last week. The bank had conducted the CNY 125 billion of one-year MLF facility at an interest rate of 2.5 percent.

Last week, China also started a CNY 1 trillion special long term government bonds issuance that is intended to fund strategic projects.

Official data showed that China’s industrial output growth accelerated to 6.7 percent in April driven by robust exports. However, growth in retail sales softened to 2.3 percent reflecting an uneven economic recovery necessitating more efforts from the part of the government to achieve the official growth target.

The recent projections from the Organization for Economic and Co-operation and Development revealed that Beijing is likely to miss the official target of about 5 percent growth this year. The second-largest economy is forecast to grow 4.9 percent this year and 4.5 percent in 2025.

Stay ahead of the market with RTTNews Economic Calendar – track key events that move the financial world.

China Keeps Lending Rates Unchanged As Expected

Posted on May 20, 2024 by RTT Staff Writer

China central bank retained its benchmark lending rates as expected on Monday after the government rolled out measures to support the property market.

The People’s Bank of China left the one-year loan prime rate unchanged at 3.45 percent.

Likewise, the five-year LPR, the benchmark for mortgage rates, was maintained at 3.95 percent. The five-year LPR was last lowered by 5 basis points in February to support the property market.

The PBoC fixes the LPR monthly based on the submission of 18 designated banks. However, Beijing has influence over the fixing. The LPR replaced the traditional benchmark lending rate in August 2019.

Last week, China also started a CNY 1 trillion special long term government bonds issuance that is intended to fund strategic projects.

Stay ahead of the market with RTTNews Economic Calendar – track key events that move the financial world.