The peso and the BMV fell slightly in a volatile session, while global markets took a breather amid expectations of rate cuts by the United States Federal Reserve.
Traders analyzed data from the world’s largest economy that showed manufacturing activity contracted for the ninth straight month in November. Additionally, comments are expected in the evening from Fed Chairman Jerome Powell, seeking clues about the future of interest rates.
Markets give close to 90% odds of a Fed credit cost cut at its December 9-10 meeting. Although on Monday, they took a break after several days of increases due to these projections.
In Mexico, remittances, one of the country’s main sources of foreign currency, fell in October for the seventh consecutive month, according to a Banxico report. Capital received decreased 1.7% year-on-year to 5,635 million dollars.
Manufacturing data from Mexico is also expected, along with new data at the local level and in the United States – especially labor and inflation – that could shed light on the health of the economies.
In addition, private sector analysts lowered Mexico’s economic growth expectation for this year to 0.4% from the previous 0.5%, as well as inflation to 3.74% from the previous 3.78%, according to a Banxico survey.
Read: Private analysts lower their forecast for Mexico’s GDP in 2025 to 0.4%
The peso was trading in the afternoon at 18.3012 per dollar, with a decrease of 0.06% compared to the LSEG reference price on Friday, after trading with increases and below the 18.30 per dollar mark, while the dollar externally reduced its previous losses of the session and operated practically stable.
For the Monex brokerage, the exchange rate in the country will be influenced by economic data both locally and in the United States, in the search to anticipate what the Fed will do.
“We anticipate that the USD/MXN could continue with a deeper correction if US labor market data reinforces expectations of a 25 bp cut by the FED next week,” he said.
The benchmark S&P/BMV IPC stock index, meanwhile, closed with a preliminary drop of 0.14% to 63,509.03 points, after trading between rises and falls during the session.
“The IPC ended November with a performance of +1.3%… With this movement, the index registers accumulated gains of +28.44% so far this year. By stations, 22 of the 35 that make up the index ended in positive territory. On the positive side, GAP, Liverpool and Qualitas were the ones that led the gains, while Gentera, Cuervo and Inbursa were the most lagged of the month,” Activer said in a report.
The shares of América Móvil fell 3.19% to 20.34 pesos, while those of Grupo Aeroportuario del Pacífico, GAP fell 2.81% to 433.72 pesos, and were among those that fell the most on the day. On the positive side, meanwhile, the shares of the mining company Industrias Peñoles rose 6.49% to 822.97 pesos, and gave support to the market.
In the debt market, the 10-year bond yield gave up its previous advances and ended unchanged at 8.72%, while the 20-year rate also ended stable at 9.30%, after advancing 10 basis points during the day.
With information from Reuters
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