Mexican Stock Market Takes a Hit in 2024
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- Mexican Stock Market Takes a Hit in 2024
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[[[[
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]].
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.
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.