Stock market and peso recover

MEXICO CITY (EFE).— The Mexican Stock Exchange (BMV) posted a gain of 1.73% yesterday, reaching 54,410.51 units, to link two days of strong gains following Monday’s collapse due to nervousness following the election results in Mexico.

“The capital market closed the session with general gains due to optimism on the part of investors that the Fed might cut rates twice this year,” explained Gabriela Siller, director of Economic and Financial Analysis at Banco Base.

He said that in the United States the Dow Jones gained 0.25%, the Nasdaq advanced 1.96% and the S&P 500 registered a gain of 1.18%.

In Mexico, the expert said, the Price and Quotation Index (IPC), the main indicator of the BMV, closed the session with an advance of 1.73%, linking two sessions on the rise following having fallen 6.11% in the session on Monday as a reaction to the election results of June 2.

Regarding the closing price last Friday, the expert said that “the CPI continues to show a fall of 1.39%.”

For his part, Enrique Covarrubias, Director of Economic Analysis at Grupo Financiero Actinver, indicated that “the CPI followed the positive trend of its peers in the United States, to rebound by 1.73%.”

Despite the advance, the Mexican index has accumulated a decline of -5.2% so far this year and is -7.3% away from its historical maximum of 58,711.87 points, reached on February 7, 2024.

The weight is strengthening

After two days of accumulating losses of more than 80 cents and its worst fall in four years, the peso stopped its declines and became the emerging currency with the most gains once morest the dollar.

The currency appreciated by 1.96% once morest the dollar, according to data from the Bank of Mexico. This brought the exchange rate to 17.53 units, 35 cents less than the close on Tuesday, June 4.

At bank counters, the dollar closed at 17.98 pesos, 36 cents less, according to Citibanamex.

“The Mexican currency was favored by the easing of investors’ nervousness regarding the results of June 2. With this, the markets are returning their attention to information regarding the timing and scope of the rate cuts,” said Janneth Quiroz of Monex.