Background on the Mexican Economy and Relevant Figures
The Mexican economy, like many others, is influenced by various factors including employment rates and stock market performance. One key figure in this context is Juan Manuel Garcia, the President of Monex Grupo Financiero. His insights are often sought after due to his extensive experience and understanding of the Mexican financial landscape.
US Unemployment Benefits: A Positive Sign
In the United States, the number of people applying for unemployment benefits decreased by 10,000 during the week ending December 20, reaching a seasonally adjusted 214,000. Economists had predicted a figure of 224,000, making this report a positive sign for the US economy.
Mexico’s Unemployment Rate: A Less Optimistic Picture
However, in Mexico, the situation paints a less optimistic picture. According to data from the National Institute of Statistics and Geography (INEGI), Mexico’s unadjusted unemployment rate rose to 2.7% in November from 2.6% in October.
Mexican Peso’s Performance
On this mid-week, the Mexican peso weakened against the US dollar after reaching levels not seen since July of the previous year. This occurred in a session with reduced liquidity, just before Christmas Eve.
- Closing Rate: The Mexican peso closed the day at 17.9418 pesos per dollar, marking a 0.26% decrease from the previous day’s close, though still below the critical threshold of 18 pesos per dollar.
- Local Employment Data: Despite the US showing positive employment trends, Mexico’s labor market data suggested a less optimistic scenario. The unadjusted unemployment rate in Mexico increased to 2.7% in November from 2.6% in October, according to INEGI.
- Monex Grupo Financiero’s Perspective: Monex Grupo Financiero, led by Juan Manuel Garcia, noted that these results reinforce signals of a gradual moderation in the labor market as 2025 approaches, aligning with the low economic growth observed throughout the year.
Bolsa Mexicana de Valores (BMV) Performance
On the same day, the Mexican stock market, Bolsa Mexicana de Valores (BMV), hit a new historical closing high.
S&P/BMV IPC Index
The benchmark S&P/BMV IPC index rose marginally by 0.03% to reach 65,616.43 points, setting a new historical closing high. During the day, it even peaked at 65,722.96 points.
Low Trading Volume
The day’s trading volume was exceptionally low, with only 16.4 million shares traded—significantly below the average of around 200 million in recent months. This low volume could be attributed to the reduced trading activity due to the Christmas Eve holiday.
Top Performing Stocks
El Puerto de Liverpool, a department store chain, led the gains with a 2.66% increase to 103.43 pesos, followed by Alsea, a restaurant operator, which added 1.75% to reach 55.77 pesos.
Ollamani’s Performance
Outside the S&P/BMV IPC, Ollamani, a company owned by businessman Emilio Azcárraga, gained 2.08% to 82.83 pesos after announcing a partnership with the US investment fund General Atlantic the previous day.
Debt Market Performance
In the secondary debt market, the yield on the 10-year bond decreased by three basis points to 8.96%, while the 20-year bond yield rose by seven basis points to 9.61%.
Key Questions and Answers
- Q: What was the closing rate of the Mexican peso against the US dollar on this particular day? A: The Mexican peso closed at 17.9418 pesos per dollar.
- Q: How did the US unemployment benefits report impact the Mexican economy? A: Although the US showed a positive trend with decreasing unemployment benefits, Mexico’s labor market data suggested a less optimistic scenario.
- Q: What was the performance of the Bolsa Mexicana de Valores (BMV) on this day? A: The BMV reached a new historical closing high, with the S&P/BMV IPC index rising marginally to 65,616.43 points.
- Q: Why was the trading volume so low on this day? A: The reduced trading activity was likely due to the Christmas Eve holiday.
- Q: Which stocks performed well on this day, and why? A: El Puerto de Liverpool and Alsea were among the top performers, while Ollamani gained ground following a partnership announcement with General Atlantic.
