Morning View
Donald Trump was inaugurated as the new president of the United States
International
On a day when there was no trading in the U.S. markets due to the holiday in commemoration of Martin Luther King Jr, Donald Trump took office as the new president, making his first economic announcements.
In this regard, Trump declared a “national energy emergency” with the aim of reducing inflation, with emphasis on freeing up oil and gas production and allowing new development of these industries on federal lands. At the same time, he announced the creation of the Foreign Revenue Service to collect revenues by implementing tariffs on foreign countries, among other issues. In this context, the dollar index declined -1.2% on a daily basis.
Regarding Q4 2024 corporate results, Netflix and 3M will report today. For Netflix, analysts expect revenues of USD 10.13 billion, and earnings per share (EPS) of USD 4.2; while for 3M, revenues of USD 5.78 billion and EPS of USD 1.67 are expected.
Fuente: PUENTE Hnos, Bloomberg
Stock indexes closed positive in the U.S. ahead of Trump's inauguration
International
In the United States, equity indices closed the day positive on the last trading day before Trump's inauguration. The S&P 500 ended Friday's trading session with a gain of +1%, while the Nasdaq scored +1.5%, and the Dow Jones +0.8%. Today is a holiday in commemoration of the death of Martin Luther King Jr. and the focus this week will be on announcements from the new administration.
Regarding US Treasury bonds, yields closed lower than in the previous week. Thus, the 1-year bond closed at 4.20% compared to 4.22% previously, while the 3-year bond closed at 4.33% compared to 4.47% a week earlier. Finally, in the long tranche, the 10-year bond ended at 4.61%, down from 4.76% previously.
As for Q4 2024 corporate results, several reports are expected this week, including Netflix, Procter & Gamble, Johnson & Johnson, Johnson & Johnson, American Express, Kimberly-Clark and Verizon.
In Japan, December inflation will be released on Friday, which is expected at +3.4% y-o-y. At the same time, there will be a monetary policy decision by the Central Bank, which is expected to raise the benchmark rate to 0.5% from the current 0.25%.
Fuente: PUENTE Hnos, Bloomberg
