Mexico City. On the eve of China beginning to execute its plan to sell bonds totaling $138 billion from Friday through November, its multibillion-dollar financial stimulus, and the publication of U.S. producer and consumer inflation, the financial markets retreated to mixed behavior.
The Mexican peso, which began the session with a slight gain against the dollar, ended with a depreciation of 0.14 percent, to 16.8123 units per dollar spot.
According to the Bank of Mexico (BdeM), the exchange rate operated between a maximum of 16.8280 units and a minimum of 16.7910 units. The dollar managed to recover part of its losses during the day and ended stable at levels of 105,100 units, according to its weighted index, DXY, which measures the behavior of the US currency against a basket of six international currencies.
Investors largely stuck to a wait-and-see mode, with an eye on an upcoming inflation report seen as a potential opening gun for interest rate cuts.
Only the Bank of America analysis area estimates inflation of 0.3 percent in April, bringing it to 3.4 percent year-on-year, due to the increase in energy prices. “Despite the moderation, it will not be enough to provide confidence to the Federal Reserve.”
Thus, “the direction of US inflation is of special importance to evaluate the room for maneuver of the Federal Reserve (Fed) in its monetary policy,” argued CIBanco analysts.
For its part, in China inflation registered an annual rate of 0.3 percent in April, above the 0.2 percent forecast and more than the 0.1 percent increase observed in March. The government will issue one trillion yuan in long-term bonds starting Friday to finance stimulus spending in the country.
The S&P 500 closed just below the flat line, with a marginal drop of 0.02 percent, to 5,221.42 units; while the Nasdaq rose 0.29 percent, to 16,388.24 integers. The Dow Jones Industrial Average broke its eight-day winning streak, closing down 0.21 percent, at 39,431.51 points.
International oil prices rose on Monday after a series of Ukrainian attacks on Russian storage and refining sites, as well as signs of strengthening demand in the United States. In London, the price of a barrel of Brent rose 0.68 percent, to close at $83.36. Meanwhile, in New York, West Texas Intermediate (WTI) increased 1.19 percent, to $79.19 per barrel, awaiting new data on global production that will be released this week.
The Mexican Stock Exchange (BMV), for its part, registered a marginal advance of 0.02 percent, to 57,731.12 points, supported by the gains of Axtel, 8.24 percent; Banco del Bajío, 2.33 percent.
#Financial #markets #retreat #mixed #balance #sheets
– 2024-05-14 05:32:56
