The Mexican Stock Exchange (BMV) rose for the seventh consecutive day and the peso was appreciated this Thursday in the face of a generalized weakening of the dollar, in a market waiting for news about advances in the commercial conflict between China and the United States.
The session was marked by the publication of solid figures from the US economy: the applications for unemployment aid increased last week with the expected, while another report showed that the requests for lasting goods rose more than expected in March.
The referential stock index S&P/BMV IPC climbed 1.10% to 56,382.0 points, its highest closing level since May, with an accumulated return of 9.5% in the last seven sessions.
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The actions of the once alpha conglomerate, now focused on its food business, headed the increases, with 8.81% more to 14.57 pesos, after disseminating its results of the first quarter on the eve.
Vesta’s titles, dedicated to the development and administration of industrial ships and distribution centers, added 4.16% to 52.35 pesos also after publishing their quarterly report.
The weight quoted in 19,5749 units almost at the end of the businesses, with a gain of 0.19% compared to the LSE reference price on Wednesday, when it came to strengthen until 19,4640, a level not seen since October last year.
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In the last two weeks, the peso has been rapidly valued after having exceeded at the beginning of the month the barrier of 21 per dollar amid the swings of the US tariff political erratic.
“We are already on an important floor,” said Humberto Calzada, chief economist of the Rankia Latin America.
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“It is difficult to know if it will continue to be appreciated, many issues are still there, we know that the personality of President Donald Trump and any decision could continue to cause volatility at the international level and that would affect the weight,” he added.
At the local level it was announced that inflation rebounded in the first half of April, although it remained within the official objective, maintaining the prospects that the Central Bank will continue to cut the key rate in the midst of weak expectations for the economy for the commercial war.
Signatures like Citi have alerted that Mexico would have fallen into a technical recession in the first quarter, however, President Claudia Sheinbaum ruled out today that her country is facing economic contraction. GDP data at the end of March will be announced next week.
“For now the markets are already discounting that a weak data (of GDP) comes, although if we saw a stronger fall than anticipating we could be facing the possibility of a bouncing of the peso towards the 19 highs or 20 (per dollar),” said Calzada, from Rankia.
In the secondary debt market, the 10 -year bonus yield decreased seven base points to 9.38%, while the 20 -year rate dropped 14, to 10.02%.
With Reuters information
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