Mexico City. The Mexican currency recovered part of what it lost against the dollar in the last two days, registering a daily appreciation of 0.36 percent, to 19.6417 units per spot dollar this Wednesday.
After reaching 19.7131 units per dollar yesterday, the worst closing level for the national currency since December 2022, due to concerns about the impact of the controversial judicial reform and international geopolitical events, the Mexican currency recovered just over half of what it lost in the previous two sessions.
The Bank of Mexico published its quarterly inflation report, in which it cut its growth forecast for Mexico from a previous 2.4 percent to 1.5 percent; while for 2015 it expects growth of 1.2 percent. It also considered that if conditions permit, interest rates will continue to be lowered, since inflation, although with upward risks, is in a process of disinflation and high rates will gradually no longer be needed, currently at 10.75 percent.
According to data from the Bank of Mexico, the exchange rate operated with high volatility, ranging from a maximum of 19.7440 units to a minimum of 19.4640 units.
This was despite the fact that the dollar strengthened internationally. The weighted DXY index, which measures the performance of the US currency against a basket of six international currencies, appreciated 0.51 percent, to 100.970 units.
Also on Friday, the personal consumption price index, the PCE, will be released, which is the most closely watched price variable by the Federal Reserve. Analysts believe that its performance may determine the amount of interest rate cuts that the Fed is expected to undertake in mid-September.
The Mexican Stock Exchange (BMV) fell marginally by 0.07 percent, to 52,439.87 points.
Wall Street with losses
According to experts, the presentation of the quarterly report of the chip manufacturer Nvidia has become an important event for the markets. It was published at the close of trading on Wall Street.
The artificial intelligence giant’s earnings fell short of expectations, despite revenue of $32.5 billion. While analysts had forecast an average of $31.9 billion, some estimates went as high as $37.9 billion. Sales for the second quarter, which ended in July, exceeded analysts’ forecasts.
Despite this, Nvidia shares fell by more than 2 percent. The rule was that meeting expectations or disappointing them could depend on the short-term development of the markets.
The Nasdaq led the declines ahead of a quarterly earnings report by semiconductor maker Nvidia after the close. Nvidia stock fell 2.10 percent on the day and more than 6 percent in after-hours trading.
The Dow Jones, which includes the 30 largest stocks, fell 0.39 percent to 41,091.42 points, while the S&P 500 index fell 0.60 percent to 5,592.18 points and the technology-driven Nasdaq fell 1.14 percent to 17,552.44 points.
Oil prices fell again on Wednesday, in a market concerned about the lack of dynamism in demand and without focus on the tensions in the Middle East. WTI fell 1.34 percent to $74.52 per barrel, while Brent fell 1.37 percent to $78.46.
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– 2024-09-03 13:29:23
