The peso advanced this followingnoon in the face of a global decline in the dollar following the disclosure of a weak private employment report in the United States, while the stock market fell to levels not seen since March 2021, confirming that you are in a market with a downward trend.
Private employers in the United States added 132,000 jobs in August, well below analysts’ expectations, according to a report from consultancy ADP, which is seen as a preview of an official labor market report due on Friday.
The peso was trading at 20.12 per dollar almost at the end of business, with an appreciation of 0.14% once morest the Archyde.com reference price on Tuesday, profiling to end August with a cumulative return of 1.1%.
“In the market, a scenario of contradictory news is taking place,” said the firm CI Banco. “Any sign of weakness or loss of dynamism in the economy, the initial reaction of the markets might be positive since it would imply a less aggressive Fed regarding its rate hike.”
Read more: Wall Street records the weakest August in 7 years of activities
The stock market registers its worst August in 24 years: it falls 6.73%; dollar, 20.12 per peso
In Mexico, the central bank raised its forecasts for inflation this year, warning that the effects of shocks on prices might last longer than estimated or even worsen.
The benchmark S&P/BMV IPC .MXX stock index lost 2.18% to 44,919.22 points, a level not seen in a year and a half, confirming a bear market, with an accumulated fall of 20.7% compared to its historical maximum closing from April 1.
The stock market posted a 6.7% loss in August and a 15.7% drop so far this year, the worst performance in the period among its most important peers in the region.
The titles of Operadora de Sites Mexicanos SITES1A1.MX led the decline on Wednesday, with a decrease of 5.91% to 20.06 pesos, followed by those of Grupo Financiero Inbursa GFINBURO.MX, which subtracted 5.48% to 31.74 pesos.
In the debt market, the yield on the 10-year bond MX10YT=RR fell seven basis points to 9.04%, the same as the 20-year rate MX20YT=RR which ended at 9.03%.
With information from Archyde.com.
It may interest you: US Gas Prices Fall to Pre-Ukraine Invasion Levels
