Mexican Economic Data Highlights the Second Week of November
The second week of November was marked by significant economic data relevant to Mexico, including job creation figures from the Instituto Mexicano del Seguro Social (IMSS) for October and the timely consumption private indicator.
United States Government Shutdown Concludes
Meanwhile, in the United States, the longest government shutdown in its history came to an end. Congressional research services estimate that the country lost up to $14 billion during this budgetary paralysis.
Mexican Peso Gains Ground Against the Dollar
The local currency advanced against the dollar in end-of-week trading. The greenback appreciated slightly in a volatile market due to uncertainties surrounding the release of US economic data following an extended government closure.
The exchange rate ended Friday’s session at 18.3102 units per dollar. Compared to the previous day’s close of 18.3215 units, according to official Banco de México (Banxico) data, this represented a 1.13-centavo, or 0.06%, gain for the peso.
Weekly Performance
Despite market uncertainties, the weekly performance was positive compared to the previous Friday’s record of 18.4573. The Mexican currency appreciated by 14.71 centavos, or 0.80%, reaching its best levels in six weeks.
BMV and Biva
- S&P/BMV IPC
In preliminary figures, the benchmark stock index, S&P/BMV IPC, reversed its initial gains and fell 0.32% to 62,328.63 points, according to preliminary close data, marking its third consecutive day of losses.
Shares of Grupo Televisa led the decline, dropping 3.98% to 10.61 pesos, followed by Industrias Peñoles, which fell 3.12% to 725.0 pesos.
Wall Street
- Major Wall Street Indices
The leading indices on Wall Street finished mixed on Friday, as investors awaited Nvidia’s upcoming quarterly results and worried that the Federal Reserve might postpone the interest rate cut in December.
The market partially recovered from an early mass sell-off that dragged the three major Wall Street indices down more than 1%.
The S&P 500 fell 0.05% and closed at 6,734.11 units, while the Nasdaq Composite gained 0.13% to 22,900.59. The Dow Jones Industrial Average dropped 0.65% to 47,147.48 units.
Key Events to Watch
- IMF Renews Flexible Credit Line with Mexico
The Executive Directorate of the International Monetary Fund (IMF) approved Mexico’s request to renew the Flexible Credit Line and agreed to reduce coverage to $24 billion.
This amount is lower than the previous agreement’s coverage of $35 billion, which was valid from November 2023 until the current one.
- Bank Closures in Mexico on November 17
Mexico’s banking institutions will not open to the public on November 17 due to an inhabilitated day established by the National Banking and Securities Commission (CNBV) and the Federal Labor Law, commemorating the anniversary of the Mexican Revolution.
The Association of Banks of Mexico (ABM) confirmed that only electronic services and alternative channels will operate.
According to the publication in the Federal Register on December 27, 2024, banks will suspend counter services on November 17. However, branches located within supermarkets and commercial stores will continue to operate according to their regular hours, despite it being a holiday.
Mexico’s national team faces one of its toughest tests before the 2026 World Cup this Saturday against Uruguay, a historically intense team with international standing and accustomed to competing at the highest level.
The friendly match, part of the FIFA Date, will take place on November 15 at 19:00 (Central Mexico time) at Corona Stadium in Torreón, Coahuila.
