Financial markets close optimistically and with gains

Mexico City. The Mexican peso closed Thursday’s session below 19 units per dollar spotas the Bank of Mexico (BdeM) resumed its cycle of lowering reference rates that determine the cost of credit used to finance companies and individuals.

The Mexican currency moved contrary to the response that analysts expected if the Bank of Mexico decided to cut its reference rate on Thursday. The exchange rate fell despite the increase in general inflation in Mexico and despite the fact that the monetary authority lowered its rate to 10.75 percent.

The Mexican peso registered a daily gain of 1.65 percent, equivalent to 31.83 cents against the dollar, to return, once again, to trade below 19 per dollar, to close at 18.9681 pesos per dollar. spot.

Since there was no full consensus on the BdeM’s monetary policy decision, analysts expected the exchange rate to fall if it kept the interest rate unchanged; but to rise if the rate was cut.

However, the dollar weakened its strength worldwide, as it gained around 0.20 percent during the session and closed with an appreciation of 0.01 percent, at 103.010 units, according to its weighted index, DXY, which measures the performance of the US currency against the basket of six international currencies.

With Wall Street in high spirits, with gains averaging 2 percent, the Mexican peso has had two sessions of gains, accumulating a gain of 56 cents.

Following Wednesday’s losses, after employment data showed a lower-than-expected increase in unemployment claims, which analysts say appears to have “calmed some market nerves.” This renewed optimism has led the S&P 500 to experience its best session since 2022, gaining 2.30 percent to close at 5,319.31 points.

The Nasdaq rose 2.86 percent to 16,659 points, while the Dow Jones rose 1.76 percent to 39,446.49 points.

Also yesterday’s reassuring comments by Bank of Japan (BoJ) Deputy Governor Uchida, who stressed that the BoJ will not raise rates further if financial markets are unstable, have only provided some relief to market participants, who are not only concerned about the BoJ’s policy tightening and the closing of yen carry trades.

The Mexican Stock Exchange (BMV), for its part, gained 0.37 percent to 52,876.55, linking three sessions of gains.

Oil prices rose for a third straight session on Thursday after U.S. jobs data eased demand concerns and the Middle East war helped push prices back from an eight-month low on Monday.

Brent crude futures rose 1.06 percent to $79.16 a barrel, while U.S. West Texas Intermediate crude futures gained 96 cents, or 1.28 percent, to $76.19.