The peso and the Mexican Stock Exchange (BMV) advanced this Monday after two days of losses, underpinned by a better environment for risk assets due to reduced concerns about a trade escalation between China and the United States.
After Donald Trump threatened on Friday to raise tariffs on the Asian giant, the US president softened his tone over the weekend and Treasury Secretary Scott Bessent stated that the president remained prepared to meet with Chinese leader Xi Jinping in South Korea.
The peso was trading at 18.4708 per dollar almost at the end of business, with a gain of 0.57% compared to the LSEG reference price on Friday. In the two previous days, the Mexican currency added a decline of 1.3%.
“The appreciation of the peso is due to a greater appetite for risk, since the probability that the United States will impose 100% tariffs on imports from China as of November 1 has been reduced,” said Banco Base.
The benchmark S&P/BMV IPC stock index rose 0.79% to 61,045.09 points, in a market also focused on the publication this week of the first reports of the third quarter results season.
The securities of the mining company Industrias Peñoles led the increases with 5.25% more to 823.72 pesos, given a strengthening in metal prices.
The papers of Gentera, specialized in credit services, were the second best performer, advancing 5.14% to 45.37 pesos.
In the secondary debt market, the 10-year bond yield fell three basis points to 8.57%, while the 20-year rate fell two basis points to 9.22%.
With information from Reuters.
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