Preliminary Gross Domestic Product for the first quarter in the United States registered +1.6%, below expectations
International
Yesterday, in the United States, the preliminary Gross Domestic Product figure for the first quarter of 2024 was published. Although the analysts' consensus expected 2.5% annually, the actual figure came in at 1.6%. Recent economic growth figures show a moderation while inflation remains outside the Fed's target range. As a result, the Fed's rate cut expectations were postponed to the period between September and November of this year, when a first cut was initially expected between June and July.
Then, regarding the US companies' earnings season, the moderate projections they are presenting for the second quarter of the year are particularly noteworthy. That said, Alphabet reported earnings per share of USD 1.89 when USD 1.51 was expected and its revenue was USD 80.54 billion when the analysts' consensus expected USD 78.59 billion.
The subsequent reaction of the US financial market was negative given the results of the Gross Domestic Product and at the close of the day there was a -1.0% drop in the Dow Jones, followed by drops of -0.6% and -0.5% in the Nasdaq and the S&P 500. On the other hand, the yield of the 1-year Treasury bond remained at 5.2%, but the yield of the 3-year and 10-year bonds rose by +10 basis points and closed at 4.9% and 4.7%, respectively.
Latam
Latin American stock markets traded mixed, with Peru's stock market up +1.7% on the day
Latin American stock markets presented mixed results yesterday. On the upside, the Peruvian stock market stood out, with +1.7%, and Mexico's IPC with +1%. On the other hand, Chile's IPSA and Brazil's Bovespa dropped -0.4% and -0.2%, respectively.
The focus of the day in Brazil will be on the inflation data for the first half of April, which is expected to be +0.3% higher than the previous period and +3.9% year-on-year. In Mexico, the unemployment rate and the trade balance for the month of March will be released.
The 10-year Treasury bond yield remains at 4.6%
International
The Treasury yield curve remained stable during yesterday's trading. The yields of the 1-year and 3-year bonds continued at 5.2% and 4.8%, while the yield of the 10-year bond closed at 4.6%.
On the other hand, the main US stock market indexes presented mixed performances. On the one hand, the S&P 500 and the Nasdaq rose +0.1%, respectively. On the other hand, the Dow Jones adjusted -0.1% at the close of the day. In addition, the Eurostoxx contracted -0.4% during the day.
Tomorrow, the United States will release the preliminary Gross Domestic Product figures for the first quarter of the year. Analysts' expectations are at 2.5% annually. In addition, it is worth noting that last quarter's figure was 3.4% annualized.
Latam
Mexico's mid-April inflation exceeded expectations, reaching +4.6% year-on-year
In Mexico, inflation in the first half of April was +0.1% higher than the previous period and +4.6% year-over-year, above analysts' consensus estimates of -0.03% and +4.5%, respectively.
Meanwhile, in Brazil, the April consumer confidence index stood at 93.2 points, improving for the second consecutive month and representing the best performance so far this year.
Latin American stock markets were generally negative at the close of trading yesterday, with the exception of the Peruvian stock market, which rose +0.6%. Thus, the most pronounced decline was that of Chile's IPSA with -1.4%, followed by Colombia's stock market and Mexico's IPC, with -0.3% in each case.
