Mexico City. In the face of warning signs regarding the national and global economy and the start of discussions in the legislature on the reform of the judicial power in Mexico, the Mexican financial markets, along with those in the United States, operated on Tuesday in a sharp decline.
The Mexican stock and exchange markets continued to lose ground on Tuesday. The Mexican currency fell 0.39 percent, equivalent to 7.67 cents against the US currency, to close at 19.8711 units per spot dollar.
According to data from the Bank of Mexico (BdeM), the exchange rate operated between a maximum of 19.9020 units and a minimum of 19.7620 units. So far this year, the national currency has accumulated a loss of 12.18 percent.
Amid the strength of the dollar and caution on the part of investors in trading the national currency, the peso recorded two falls, losing 0.85 percent against the dollar (17 cents).
The dollar index, DXY, which measures the performance of the US currency against a basket of six international currencies, appreciated 0.07 percent, to 101.695 points.
The Mexican Stock Exchange (BMV) fell 1.72 percent this Tuesday, equivalent to 903.96 points, closing at 51,589.42 units, its lowest level of the year and since November 2023. Thus, so far this year, the main Mexican stock index has accumulated a nominal loss of 10.10 percent. Meanwhile, a drop of 12.1 percent is reported compared to its last historical high on February 7, 2024 (58,711.87 points).
The bad memory of the last non-agricultural payrolls report in the United States (for July), and the fall in technology stocks led Wall Street to falls not seen since the panic of early August.
Oil at its lowest level
As technology stocks fell, led by semiconductor giant Nvidia, which fell 9.54 percent on Tuesday, the Dow Jones Industrial Average fell 1.51 percent to 40,936.93 points; the S&P 500 index fell 2.12 percent to 5,528.93 points; and the technology-focused Nasdaq lost 3.25 percent to 17,137.56 points.
Nvidia’s decline comes after the company, which has been a driver of tech stocks so far this year, reported impressive results last week with a year-over-year net profit of $31.84 billion for the first half of the year.
However, according to economic analysts, investors are probably now dumping shares of highly volatile companies in anticipation of the Federal Reserve’s (Fed) decision on its long-awaited interest rate cut, scheduled for its Federal Open Market Committee meeting on September 17-18.
While oil prices were affected by China and geopolitical events, oil prices fell nearly 5 percent on Tuesday to their lowest levels in about nine months.
Amid signs of a deal to resolve the conflict that has paralyzed Libyan crude production and exports, Brent futures settled down $3.77, or 4.9 percent, at $73.75 a barrel, their lowest since Dec. 12, while West Texas Intermediate (WTI) futures, which were not traded on Monday for the U.S. Labor Day holiday, fell $3.21, or 4.4 percent, to $70.34, also a low since December.
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– 2024-09-08 17:59:40
