Peso and BMV rise in volatile session after US inflation data

The peso and the Mexican Stock Exchange (BMV) rose this Thursday in a volatile day after the publication of higher-than-expected inflation data in the United States, data that lowered rates in the markets after the Federal Reserve (Fed) starts cutting interest rates rates in March, as expected.

In another US economic report released this morning, initial claims for government unemployment benefits fell much more than expected this week.

The peso ended trading at 16.9114 per dollar, up 0.23% from Wednesday’s Reuters benchmark price, although it weakened 0.68% to 17.0650 during the day.

The reversal came after Richmond Fed Chairman Thomas Barkin said December data did little to clarify the inflation trajectory for U.S. central bank officials considering the possible start of rate cuts this year.

The market is now awaiting the release of December US producer price data on Friday for further signals on the direction of monetary policy.

Read: US inflation rose three-tenths in December to close 2023 at 3.4%.

The stock market rose 0.22%

The benchmark S&P/BMV IPC stock index added 0.22% to 55,438.75, erasing its initial losses, on trading volume of 169.5 million securities that, although recovering in recent sessions, is still less than average daily figure of 300 million previously. vacation period.

Analysts agreed the market was also targeting the start of fourth-quarter corporate earnings season on Friday, when results from some financial sector companies will be released.

Telecom giant América Móvil rose 1.77% to P15.56, followed by pharmaceutical company Genomma Lab, which added 1.53% to P13.94.

In the debt market, the 10-year yield fell four basis points to 9.08% and the 20-year rate fell two basis points to 9.18%.

According to Reuters

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