The peso and the stock market advanced on Monday amid a general decline in the dollar and after the release of local figures that showed that economic activity grew more than expected in October.
The Global Indicator of Economic Activity (IGAE) advanced 1%, according to seasonally adjusted data, recovering from a contraction that occurred in September and exceeding market expectations.
The peso was trading at 17.9725 pesos almost at the end of business, with an appreciation of 0.26%, on the first day of a week that was anticipated to be of lower activity due to the end-of-year holiday period.
Mexico’s inflation for the first half of December is scheduled to be released on Tuesday, data that will be key to calibrating the next steps of the Bank of Mexico after it cut its key rate again last week.
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According to a Reuters poll, although the underlying index would have moderated, it would still be above the official target, reinforcing the prospects that the entity could interrupt its monetary easing cycle.
The benchmark S&P/BMV IPC stock index rose 1.27% to 64,778.18 points.
The shares of the mining company Industrias Peñoles led the increases, with 7.68% more to 936.83 pesos, followed by those of the media giant Grupo Televisa, which added 4.14% to 10.82 pesos.
In the debt market, primary yields on Treasury Certificates (Cetes) fell in the weekly auction of government securities, following the central bank’s decision last week to reduce the key rate.
The yield of the 28-day benchmark Cete was placed at 7.04%, 11 basis points below its previous auction.
With information from Reuters.
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