Overview of Mexican Stock Market Performance
On Friday, the Mexican stock market closed with gains, with the benchmark index reaching an all-time high. This performance was influenced by recent U.S. employment data and speculation that the Federal Reserve may pause its interest rate hikes.
Key Players in the Mexican Stock Market
The primary benchmark, the S&P/BMV IPC, managed by the Bolsa Mexicana de Valores (BMV), rose by 0.83% to 66,062.62 points. Meanwhile, the FTSE BIVA, overseen by the Bolsa Institucional de Valores (Biva), increased by 0.85% to 1,306.27 points.
S&P/BMV IPC
Notable Gainers in the Mexican Stock Market
Among the top performers in the benchmark index were:
- Grupo México: The mining company’s stock rose by 3.81% to 182.98 pesos.
- Grupo Bimbo: The food company’s stock increased by 3.25% to 62.6 pesos.
- Industrias Peñoles: The mining company’s stock gained 2.86% to 987.3.
U.S. Jobs Data and Fed Rate Hike Pause Speculation
The United States added 50,000 jobs in the previous month, down from a revised 56,000 in November. Analysts had expected 60,000 new positions. Furthermore, the unemployment rate came in at 4.4%, lower than the anticipated 4.5%.
These figures, particularly the unemployment rate, indicated a still-robust job market. Consequently, speculation strengthened that the Federal Reserve might pause its interest rate hikes. Market futures suggest a 95% probability of such a pause.
First Full Week of the Year
The Mexican stock market concluded its first full week of the year on a positive note. The S&P/BMV IPC surpassed 66,000 points for the first time and reached an all-time high. The FTSE BIVA crossed 1,300 points for the first time and also marked a record.
Weekly performance saw the S&P/BMV IPC accumulate a 3% gain, while the FTSE BIVA yielded 2.69%. The movements were largely driven by mining stocks, as investors sought safe-haven assets.
Key Questions and Answers
- What is the benchmark index for the Mexican stock market? The primary benchmark is the S&P/BMV IPC, managed by the Bolsa Mexicana de Valores (BMV).
- Who are some notable gainers in the Mexican stock market? Some top performers include Grupo México, Grupo Bimbo, and Industrias Peñoles.
- What recent U.S. jobs data influenced the Mexican stock market? The United States added 50,000 jobs in the previous month, with an unemployment rate of 4.4%, both lower than expectations.
- Why is there speculation about a pause in the Federal Reserve’s interest rate hikes? The robust U.S. job market, indicated by the lower-than-expected unemployment rate, has led to speculation that the Federal Reserve may pause its interest rate hikes.
