Overview of the Mexican Stock Market Performance
On Thursday’s trading session, the Mexican stock market witnessed an upward trend despite a volatile day marked by uncertain U.S. employment figures that cast doubts on the outlook for the world’s largest economy.
Key Stock Market Indices
- S&P/BMV IPC: The leading index of the Bolsa Mexicana de Valores (BMV) increased by 0.36% to reach 59,867.62 units.
- FTSE BIVA: The index of the Bolsa Institucional de Valores (Biva) rose by 0.44% to 1,198.66.
S&P/BMV IPC
Notable Gainers in the Mexican Stock Market
Among the top performers in the Mexican stock market were:
- Grupo Carso: Up 2.67% to 126.98 pesos.
- Coca-Cola FEMSA: Up 2.53% to 156.09 pesos.
- FEMSA: Up 2.33% to 160.14 pesos.
With these gains, the S&P/BMV IPC reached a new historical closing high and neared its intraday peak of over 60,000 units recorded the previous day. This week, the benchmark index has gained 1.97%, and year-to-date, it is up by 20.91%.
Key U.S. Employment Figures
The ADP National Employment Report revealed that the U.S. private sector added only 54,000 jobs last month, following a slightly revised increase of 106,000 in July. Analysts had projected an addition of 65,000 jobs.
- Initial jobless claims in the U.S. rose by 8,000 during the week ending August 30, reaching a seasonally adjusted 237,000. Analysts had expected a lower figure of 230,000.
On the domestic front, Mexico reported that fixed investment fell 1.4% in June; on an annual basis, it dropped by 6.4%, exceeding the expected decline of 4.6%. Public investment experienced the largest decrease, falling by 24%, while private investment declined by 3.9%.
Investors will receive crucial reports on non-farm payrolls and the unemployment rate in the U.S. tomorrow. These figures may provide further insights into the Reserve Federal’s future monetary policy, possibly including a rate cut this month.
Key Questions and Answers
- What is the current status of the Mexican stock market? The Mexican stock market has reached a new historical closing high, with the S&P/BMV IPC gaining nearly 21% this year.
- Why are U.S. employment figures important for the Mexican stock market? U.S. employment data influences investor sentiment and expectations for the world’s largest economy, which in turn affects global markets, including Mexico.
- What recent U.S. employment figures caused market volatility? The ADP National Employment Report showed that the U.S. private sector added only 54,000 jobs last month, below analysts’ projection of 65,000.
- What other U.S. employment data points were released this week? Initial jobless claims in the U.S. increased by 8,000 during the week ending August 30, reaching a seasonally adjusted 237,000.
- What recent Mexican economic data was released? Fixed investment in Mexico fell 1.4% in June, with a 6.4% annual decline, exceeding the expected decrease of 4.6%.
