Is Rising Inflation in Mexico a Growing Concern?
Consumer prices in Mexico rose 5.8% year-over-year in April 2017 as compared to a 5.4% rise in March 2017 and beat market expectations of 5.7%.
Mexican (EWW) policymakers aim to keep the country’s monetary policy in line with US (SPY) monetary policy, as the two countries’ economies are closely linked.
Consumer confidence in Mexico (EWW) came crashing down in the first couple of months of 2017 amid the uncertainty of US-Mexico relations and surging inflation.
Mexico’s auto production rose 3.2% to 278.2 thousand vehicles in April 2017 as compared to April 2016 but decreased as compared to March 2017.
The Mexican economy expanded 0.6% in 1Q17, beating market expectations. Exports and private spending have continued to support growth in Mexico this year.
The US medical device industry is a global leader. Its market was valued at ~$140 billion for 2016. It represents ~45% of the global market.
The US economy is dealing with rising healthcare costs. The national healthcare expenditure grew 5.8% to $3.2 trillion in 2015 or $9,990 per person.
Trump’s recent meeting with Chinese President Xi Jinping in April ended well. China is the United States’ largest trading partner and exporter as of 2016.
The financial sector (VFH) had a decent year in 2016 as bank shares (KRE) surged due to expectations of a rise in the interest rate and deregulation.
According to many experts, big, bold tax cuts are expected to boost investment sentiment for 2017 and 2018.
According to Trennert, deregulation in the energy sector and promised reforms, if implemented, could provide significant opportunities.
According to Jason Trennert, CEO of Strategas Research Partners, the market rallies are getting partial support from President Trump’s economic reforms.
Soft economic data suggest an optimistic outlook that will rely heavily on the Trump administration pushing forward with tax reforms and infrastructure spending.
A week of political unrest in the United States (SPY) (QQQ) led to losses across indexes, but they regained by May 19, 2017.
Consumer prices in India (EPI) increased ~3.0% on a year-over-year basis in April 2017, compared to an ~3.8% rise in March—well below its market expectations.
Recently, the Indian government revised the base year for calculating macroeconomic indicators from 2004–2005 to 2011–2012.
The implementation of the Goods and Services Tax (or GST) is expected to boost India’s medium-term economic growth above 8%, according to government data.
Consumer spending in India (INDL) stood at ~17.8 trillion rupees in 4Q16, an 11% increase compared to 16.0 trillion rupees in 3Q16.
India’s trade gap increased 173.5% on a year-over-year basis to ~$13.3 billion in April 2017, beating the market’s expectations of an ~$12.8 billion gap.
India’s stock market performance has picked up pace since the beginning of 2017. The S&P BSE Sensex has gained about 10% year-to-date through May 18, 2017.