Mexican Stock Markets Down Due to U.S. Inflation

Mexican stock markets experienced declines after it was reported that inflation in the United States had increased.

According to a report, local indices fell on Wednesday, September 13th, following news that inflation in the United States marked its highest monthly increase in over a year.

This news generated a negative risk sentiment in the markets.

The Department of Labor announced early on that consumer prices in the United States exceeded expectations.

This is adverse news for hopes of a relaxation of the restrictive stance by the Federal Reserve (Fed).

As a result, Mexican stock markets responded negatively.

The benchmark S&P/BMV IPC index of the Mexican Stock Exchange (BMV), which includes the 35 most traded local stocks, fell by 0.63% to 51,533.13 units.

The FTSE BIVA, of the Institutional Stock Exchange (BIVA), dropped by 0.61% to a level of 1,064.65 units.

Within the benchmark index, most components are trading with losses.

Volaris shares lead the losses, down by 2.50% at 16.76 pesos, followed by Grupo Carso, down by 2.36% at 135.45 pesos, and Cuervo, down by 1.90% at 44.89 pesos.

“We consider that the U.S. consumer price data, which were released today and showed a slight uptick in the core index, may to some extent limit risk appetite,” Ve Por Más said in a note.

Mexican Stock Markets

There are two stock exchanges in Mexico, both of which have been operating in the Aztec nation for years.

The older one is the Mexican Stock Exchange (BMV), with origins dating back over 100 years and its operations housed in an iconic building on Reforma 255.

The more recently established exchange is the Institutional Stock Exchange (BIVA), which has only been in operation for four years.

Regarding the stock index, it is an indicator that shows how the price of a specific set of assets changes.

This index gathers data from various companies or sectors within a segment of the market.

Also read: Inflation in Mexico in August 2023: On the Decline.