Morning View
In the United States, retail sales grew by +0.6% in August
International
Yesterday, August retail sales growth figures were released, coming in at +0.6%, significantly exceeding analysts' consensus expectations of +0.2%. This growth matched July's figure, which had been +0.5% and was revised to +0.6%.
Today's focus will be on the Fed's monetary policy meeting, which will publish its interest rate decision this afternoon, and also on the subsequent press conference to be held by the institution's chairman, Jerome Powell. We note that the market expects a 25 basis point cut in the interest rate, which would go from the current level of 4.25%-4.50% to 4.00%-4.25% if projections are met.
Yesterday, US Treasury bond yields compressed. The 1-year bond closed with a yield of 3.60%, down from 3.64% previously. The 3-year bond cut its yield to 3.47%, also down from 3.50% on Monday, and finally, the 10-year bond closed at 4.03%, down from 4.04% previously.
Finally, the main US stock indices saw little change. The S&P 500 and Nasdaq closed down 0.1%, while the Dow Jones fell 0.3%. So far in 2025, the indices have accumulated gains of 12.3%, 15.7%, and 7.6%, respectively.
Sources: PUENTE Hnos, Bloomberg
The United States has reportedly reached an agreement with China regarding TikTok.
International
Yesterday, news broke that the United States and China had reached an agreement that would allow the social network TikTok to continue operating in the US. Donald Trump said he would speak with Chinese leader Xi Jinping on Friday. Meanwhile, China accused chip company Nvidia of violating antitrust laws in its acquisition of Mellanox in 2020. Both news items come amid a broader discussion regarding trade between the two countries and import tariffs, which are still to be defined.
On Monday, the main US stock indices closed with widespread gains. The S&P 500 advanced +0.5%, while the Nasdaq advanced +0.9% and the Dow Jones +0.1%. So far in 2025, the indices have accumulated variations of +12.5%, +15.7%, and +7.9%, respectively.
Meanwhile, US Treasury bond yields compressed slightly. The 1-year bond closed with a yield of 3.64%, just below the previous 3.65%. The 3-year bond cut its yield to 3.50%, also below Friday's 3.53%, and finally, the 10-year bond closed at 4.03%, down from the previous 4.06%.
Sources: PUENTE Hnos, Bloomberg
