The weight advanced again at levels not seen in more than a year, while the Mexican Stock Exchange (BMV) first exceeded in its history the 62,000 points, encouraged by expectations that the Federal Reserve (Fed) will reduce its reference interest rate in its decision this week.
The day was marked by the publication of a weak report of the United States manufacturing activity. The data joined a disappointing weekly employment report published on Thursday and recent figures of inflation greater than expected.
The peso closed at 18,3604 units per dollar, its best level since July 23 of last year (18,1690), according to Banxico data. The Mexican currency was appreciated 0.48% and spoke seven sessions with profits.
On Thursday and Friday the weight had already reached its best levels since mid -July last year.
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“This behavior is promoted above all by the weakness of the dollar, which is linked to the growing expectations of a rate cut by the Federal Reserve,” said Antonio Di Giacomo, an analyst for financial markets for Latin America of the firm XS.com.
“The peso was driven by the weakening of the dollar, thanks to the optimism of investors on the Fed monetary policy decision,” added the Monex Financial Group in a report to the closure.
Base exposed in a report that the appreciation of the peso occurred along with a fall of the US dollar of 0.29% according to the weighted index, given the expectation that the Fed will cut its rate in 25 base points this Wednesday.
The Financial Group added that the drop in the dollar is also due to the fact that the president Donald Trump continues to press the Central Bank, because this morning he mentioned that the president of the entity, Jerome Powell, must cut the rate “now and no matter how much magnitude of what I had in mind.”
In the morning it was announced that the manufacturing activity index in the New York region prepared by the US Central Bank, known as Empire State, fell to 8.7 in September, from a reading of 11.9 in August. A Reuters survey anticipated that the indicator is 5.
After the data, the market is committed to the Fed will begin to reduce its rate in its warning on Wednesday, with a 25 -points base cut, after keeping it in a range of between 4.25% and 4.50% since the end of last year.
President Donald Trump called the institution to apply a reduction of “greater” magnitude.
The decisions of the Bank of England and the Bank of Japan will also be key throughout the week.
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Weight advances slightly after US manufacturing data; BMV rises to a new historical maximum
At the local level, the markets will be closed on Tuesday by a holiday. It is expected that in the week authorities of Mexico and China will meet to dialogue on an increase to tariffs proposed by the Latin American country to Asian cars.
Bag reaches record level to closure
The referential shareholding index S&P/BMV IPC rose 0.49% to a record closure of 62,102.13 points, although during the day it marked a new historical maximum of 62,252.13 units.
The titles of the Grupo Carso conglomerate, by Carlos Slim, led the increases, with 3.22% more at 131.50 pesos, followed by those of the Walmart retrose of Mexico, which added 2.73% to 56.78 pesos.
In the debt market, the primary yields of the Treasury Certificates (CETES) fell into the weekly auction of government values.
The CETE 28 -day referential rate was placed at 7.25%, 10 base points below its previous auction.
With information from Reuters and Francisco Rivera
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