Introduction
The penultimate week of January saw Mexico and the world grappling with various significant economic data points, alongside volatility and uncertainty caused by US President’s attempts to claim Greenland and warnings about Iran.
Key Economic Indicators
Mexico’s Inflation, Private Consumption, and Economic Activity
In local news, data was released regarding the inflation of the first half of January, private consumption, and Mexico’s economic activity.
Meanwhile, in the United States, growth data for the Gross Domestic Product (GDP) was published.
Mexican Peso Performance
The Mexican peso continued its advance against the US dollar throughout the week. The local currency hit a new 18-month low, continuing its strong start to the year.
The exchange rate ended the day at 17.3677 units per dollar, following a record of 17.4802 units the previous day, according to official data from Banco de México. This movement represented a gain of 11.25 centavos or 0.64% for the peso.
After US President’s speech in Davos reduced market concerns about his pursuit of controlling Greenland, the Mexican currency extended its yearly advance and, after consolidating below 17.50, benefited from the continued weakening of the US dollar in the market.
Compared to the closing rate of 17.6465 units from the previous week, the currency showed an improvement of 27.88 centavos or 1.58%.
Stock Market Performance
BMV and BIVA
Mexico’s value stock exchanges recorded gains for the third consecutive week. Despite a slight decline on the last day of the period, local indices maintained their positive trend in January, oscillating near record levels.
The S&P/BMV IPC, managed by the Mexican Securities Exchange (BMV), which groups the most traded local stocks, fell 0.22% to 68,195.15 points. The FTSE BIVA, managed by the Institutional Securities Exchange (BIVA), decreased 0.08% to 1,350.02 units.
This benchmark index also showed a solid weekly advance of 1.57%, significantly outperforming its international peers. Year-to-date, Mexico’s primary stock market reference has improved by 5.95%, also well above its international peers.
Wall Street Performance
Major indices on Wall Street had mixed performances during Friday’s trading, following two days of rebounds and a session marked by Intel stocks’ sharp decline.
The Dow Jones Industrial Average, comprising the shares of 30 major companies, fell 0.58% to 49,098.71 points. The S&P 500, which includes the most valuable companies, gained 0.03% to 6,915.61 points. The tech-heavy Nasdaq Composite advanced 0.28% to 23,501.24.
New York’s stock indices continue to show negative performance at the start of the year, pressured by an uncertain economic and geopolitical environment. The S&P 500 fell 0.35% in the week, while the Nasdaq retreated 0.06%, and the Dow Jones dropped 0.53%.
Key Questions and Answers
- What were the key economic indicators released during this week?
In Mexico, data was released on the inflation of the first half of January, private consumption, and Mexico’s economic activity. In the US, GDP growth data was published.
- How did the Mexican peso perform against the US dollar?
The Mexican peso continued its advance against the US dollar, reaching a new 18-month low. It gained 0.64% following the US President’s speech in Davos, which reduced market concerns about his pursuit of controlling Greenland.
- What was the performance of Mexico’s stock exchanges?
Mexico’s value stock exchanges recorded gains for the third consecutive week, with the S&P/BMV IPC showing a solid weekly advance of 1.57%. The FTSE BIVA also demonstrated positive performance, improving by 5.95% year-to-date.
- How did Wall Street indices perform during this week?
Wall Street indices had mixed performances, with the Dow Jones Industrial Average falling 0.58%, the S&P 500 gaining 0.03%, and the Nasdaq Composite advancing 0.28%. These performances were influenced by an uncertain economic and geopolitical environment.
