Without US reference, Mexican financial markets close mixed

Mexico City. In a session without the reference of the United States, the financial markets in Mexico closed with a mixed balance this Monday. On the eve of the outcome of the reform of the Judicial Branch in the country, the Mexican peso showed a daily depreciation against the dollar by 0.47 percent, equivalent to 9.17 cents, to close at 19.7944 units per spot dollar.

We are awaiting monetary policy actions by central banks around the world, after the latest inflation data on both sides of the Atlantic have reinforced expectations of further interest rate cuts.

According to data from the Bank of Mexico (BdeM), the exchange rate operated between a maximum of 19.8180 units and a minimum of 19.7850 units, maintaining high volatility, due to the risk for Mexico, as the Chamber of Deputies is expected to discuss and approve the ruling on reforming the Judicial Branch on Tuesday.

Meanwhile, the dollar remained unchanged, according to the DXY index, which measures its performance against a basket of six international currencies, as it fell 0.05 percent to 101.570 units.

With the ISM manufacturing indicator for August due to be released on Tuesday and the US employment report on Friday, markets will be watching closely to see how much the US rate cuts could be.

While Wall Street remained closed for the Labor Day holiday, the Mexican Stock Exchange (BMV) rose 0.98 percent, equivalent to 507.51 points. The main Mexican stock index, with low trading volume, closed at 52,493.38 points.

During the session, he highlighted that Grupo Televisa shares fell 4.70 percent on Monday, amid an investigation being carried out by the United States Department of Justice related to FIFA, which could have a material impact on the financial situation or operating results of the Mexican broadcaster.

According to data from the Mexican Stock Exchange, shares of Televisa, a telecommunications, broadcasting and entertainment company, were the stock that fell the most during the session on Monday.

Oil prices, meanwhile, rose, recouping some of last week’s losses, as Libyan crude exports remained suspended and concerns about higher OPEC+ output from October eased.

With trading volumes reduced due to the holiday in the US market, Brent crude futures gained 0.77 percent to $77.52 a barrel, while US West Texas Intermediate added 0.65 percent to $74.03. On Friday, Brent and WTI lost 1.4 percent and 3.1 percent, respectively.