Investors remain cautious at the end of September

Mexico City, Caution emerges this Monday among investors who see the escalation of war in the Middle East and the end and beginning of a new six-year term in Mexico.

At the start of the American markets, the Mexican peso operates at around 19.6426 units per dollar, which represents an appreciation of 0.29 percent against the US currency.

This will be the last session of the exchange market for President Andrés Manuel López Obrador, so if the behavior of the exchange rate continues to oscillate at the levels of 19.60, the gain of the Mexican currency in the president’s administration would be around 3.5 percent , the first six-year period to register an appreciation since Mexico decided to free float (movement of supply and demand) of its currency in 1994.

“The Mexican peso tries to cut losses in the last session of September. A month marked by the Fed’s 0.50 percentage point drop and the increase in tension in the Middle East,” said CIBanco’s analysis area.

Meanwhile, the dollar index, which measures its behavior against a basket of six international currencies, appreciates 0.14 percent, to 100.239 points.

However, the caution that investors show this Monday is increased by the escalation of war in the Middle East. During the weekend, Israeli attacks on Lebanese territory and Hezbollah’s attacks on Israeli cities have multiplied.

According to specialists, the fear of an extension of the war conflict has translated, only initially, into a rebound in the price of oil, a key factor in inflation. The foreseeable increase in production in Saudi Arabia mitigates its effects. The barrel of Brent fell to 71.28 dollars, compared to the 67.86 dollars for the West Texas type barrel, the reference in the United States, with drops this morning of 0.36 and 0.45 percent, respectively.

On Wall Street, indices are trading at a loss. The Nasdaq gives up 0.07 percent; while the S&P 500 0.12 percent and the Dow Jones, 0.27 percent.

The Mexican Stock Exchange (BMV), for its part, fell 0.20 percent, to 52,673.71 points.

Geopolitical alerts also keep fixed income investors on guard. Debt interest prevents major changes for the moment. The required yield on the 10-year US bond operates at 3.762 percent. It also opens the door to new advances in the price of gold, one of the safe haven assets par excellence. However, the futures of the precious metal leave behind new highs near $2,700 per ounce and lose 0.58 percent, to $2,652.