Mexico City. The peso rose and the Mexican Stock Exchange (BMV) was trading with few changes this Friday, in a closing of the week marked by price data in the United States that reinforced expectations that the Federal Reserve will continue in November with the monetary relaxation that it began in September.
A cooling in producer prices in the world’s largest economy supported the prospects for a new interest rate cut, although less than the 50 basis point drop in September.
“Producer inflation (in the United States) stagnated in September, but core inflation rose more than the level estimated by the market consensus. This fueled concerns that core inflation could continue to show high persistence and prevent the “Fed applies 50 bp cuts to its interest rate,” Monex analysts said.
The domestic currency MXN= was trading at 19.4178 per dollar, with an appreciation of 0.17 percent against the reference price of Reuters on Thursday, while in international markets the dollar barely changed against other currencies.
The benchmark S&P/BMV IPC .MXX stock index barely rose 0.01 percent, to 52,398.51 points, at 15:40 GMT.
The shares of Kimberly-Clark of Mexico KIMBERA.MX stood out during the day, rising 2.13 percent to 30.95 pesos, after having hit a four-month low at the beginning of the week. On the other hand, the shares of the forestry company Proteak TEAKCPO.MX were suspended from trading after a drop of 14.58 percent on the day.
In the debt market, the yield on the 10-year bond MX10YT=RR remained at 9.71 percent, and the 20-year rate MX20YT=RR barely changed at 10.03 percent.
The Mexican peso was on track to close the week with a drop, while the stock index would do so with an increase.
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