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Mexico Stock Market Crashes: Worst Fall Since 2018

Mexican Stock⁣ Market Takes a ⁤Hit⁣ in 2024

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The Mexican stock market experienced notable losses throughout 2024, a year marked by economic and political uncertainty both domestically and internationally. The election⁣ of Donald Trump in the United States played‍ a significant role in this downturn, fueling​ anxieties about the future of trade ​between the two nations.

The S&P/BMV​ IPC, MexicoS‌ leading stock market‌ index, closed the year on December 31st at 49,513.27 ‌points,a 1.38% gain for the day. Though, this slight uptick followed a plunge to its lowest point of the year just the day before. This final day’s increase couldn’t mask the overall picture: the index began 2024 at 57,386.25 units, representing a substantial 13.7% cumulative decline for the year –‌ its worst performance in six years.

The FTSE BIVA, another key Mexican stock market index, fared even worse, ending the year with a 15%⁣ drop.This significant decrease underscores the widespread impact of the economic headwinds facing Mexico.

Humberto‌ Calzada, chief economist at Rankia Latam, ⁣offered a nuanced perspective: “Given the recent falls, discounting the context and variables such as the exchange rate, in the Mexican stock market we find attractive⁢ basic ⁣valuations and there is⁣ optimism towards certain instruments such as Fibras.”

Trump’s November victory heightened concerns about the Mexican economy. His protectionist stance ⁤and threats of ⁤imposing significant tariffs on‍ Mexico, Canada, and China raised fears​ about disrupting crucial trade relationships‌ that underpin ⁢Mexico’s economic activity. His ‌inauguration on January​ 20th further solidified these concerns for investors.

The impact ⁢of these market fluctuations ⁣extends beyond Mexico’s borders. For U.S. ‌investors with holdings ​in Mexican markets or​ businesses with significant⁢ trade ties ⁣to Mexico, the 2024 downturn represents a significant progress to monitor. The potential for ‍trade disruptions between the U.S.and Mexico remains a key factor influencing market stability in both countries.

Experts are closely watching ​the evolving economic and political landscape ⁢to assess the long-term implications for‌ both the Mexican ⁢and U.S. economies. The coming months will be ‌crucial in determining the trajectory of recovery and the overall impact on⁢ investor confidence.


The Mexican Stock ​Market in 2024: An ‍Interview with World Today ‌News[1]Interviewer: A new year, a new reality⁢ for the ​Mexican stock market.We ​saw a notable downturn in 2024. ​Can you elaborate on what led to this performance?





senior Editor: 2024 was undoubtedly⁢ a challenging year‍ for the⁣ Mexican stock market. We witnessed a confluence of factors leading‍ to ⁣the⁣ decline.



Primarily,⁤ the election of Donald‌ Trump in the U.S. cast a long shadow. His protectionist rhetoric and ⁣threats of tariffs⁤ on Mexico,‍ along with canada and ⁢China,‌ spooked investors and ⁣raised serious‌ concerns⁢ about the future of trade relations between these countries. ‌ Given Mexico’s reliance on trade with the‌ U.S.,this uncertainty⁣ severely impacted​ investor ⁣confidence[[[[[1]].



Adding⁣ to this, we also ‌saw general global‍ and domestic​ economic anxieties.​ These⁣ coalesced to create a perfect ‍storm for a market correction[[[[[1]].







Interviewer: ⁣The⁤ S&P/BMV IPC, Mexico’s leading‍ index, saw ​a‌ 13.7% drop. The FTSE BIVA⁤ fared⁢ even ⁤worse. These are significant losses.What ​sectors were hit especially ⁢hard?





Senior Editor: The impact⁢ was widespread, reflecting the overall economic uncertainty. Sectors heavily reliant on exports, particularly those tied to​ manufacturing and​ trade with the U.S., suffered the most.



It’s important to note that even amidst ​these losses, ther were pockets of⁣ optimism[[[[







]. Experts like Humberto Calzada of⁣ Rankia Latam highlighted ‌attractive valuations in certain sectors and expressed optimism about specific investment instruments like Fibras.





Interviewer:‍ So,⁢ looking ahead, what’s the outlook for the Mexican stock market in ⁤2025 and beyond?





Senior⁢ Editor: The ​coming months will be critical.



The ‍key factor to⁣ watch will be the evolution of U.S.-Mexico‌ relations and ⁢the impact of Trump’s policies on trade.



If trade tensions ease and a sense of ⁢stability ‌returns to the global economy,⁢ we ‍could see a ⁤recovery in the Mexican market.



But significant uncertainty remains. Investors‌ will be closely monitoring these ⁢developments and adjusting their strategies accordingly.



It’s likely to be a volatile⁤ period.





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