Inflation data supports financial market gains

Amid moderate gains in the U.S. and Mexican stock markets, the Mexican peso recovered ground, closing Wednesday below the psychological level of 19 units per spot dollar, after the U.S. inflation data strengthened the outlook that the Federal Reserve (Fed) could lower interest rates in September.

The Mexican currency reported a daily appreciation of 0.90 percent, equivalent to 17.14 cents against the US currency, to close at 18.8303 pesos per spot dollar. According to data from the Bank of Mexico, the exchange rate operated in the interbank market between a maximum of 18.8770 units and a minimum of 18.8140 units.

The dollar index, which measures the performance of the US currency against a basket of six international currencies, appreciated 0.05 percent, to 102.435 units.

The publication of US consumer inflation, which stood at an annual rate of 2.9 percent, slowing for the fourth consecutive month and reaching its lowest level since March 2021, strengthened expectations that the Federal Reserve will cut interest rates on September 18.

Wall Street closed with gains on Wednesday, responding to the second day of good news on inflation in the United States. The Dow Jones Industrial Average closed with a rise of 0.61 percent, to settle at 40,083.9 points, while the Nasdaq ended with a rise of 0.01 percent, to 17,189.05 points.

The S&P 500 index rose 0.38 percent to 5,455.21 points, closing positively for the fifth consecutive day.

The New York Stock Exchange also reacted positively yesterday by publishing that the producer price index (PPI) rose by 0.1 percent in July and was expected to rise by 0.2 percent.

The Mexican Stock Exchange (BMV), for its part, closed with an advance of 0.08 percent, to 53,718.95 points.

Oil prices fell 1 percent on Wednesday after U.S. crude inventories unexpectedly rose and fears that a wider conflict in the Middle East could threaten supplies in one of the world’s top oil-producing regions eased.

Brent crude futures closed down 1.15 percent at $79.76 a barrel, while West Texas Intermediate (WTI) crude fell 1.8 percent to $76.98 a barrel.