Background on Key Players and Context
The Mexican stock market experienced a significant downturn on the last trading day of the month, with major indices retreating from their historical highs. This decline comes amidst news from the United States and anticipation of Mexico’s historic judicial elections, set to take place this Sunday.
Carlos Slim Domit, one of Mexico’s most influential business magnates, holds significant sway over the market through his extensive investments. Two of his prominent companies, Grupo Carso and Grupo Financiero Inbursa, saw substantial drops in their stock values during this session. Grupo Carso fell by 5.53%, closing at 123.62 pesos, while Grupo Financiero Inbursa dropped by 4.95%, ending at 48.61 pesos.
Market Performance and Recent Trends
The S&P/BMV IPC, the primary index of the Mexican Stock Exchange (BMV), declined by 1.32% to reach 57,841.69 points. The FTSE BIVA, managed by the Institutional Securities Exchange (Biva), also experienced a downturn, falling 1.42% to 1,169.38 units.
Despite the recent decline, the S&P/BMV IPC has maintained a positive trend for five consecutive months, with a 2.81% gain in May. Year-to-date, the index has increased by 16.82%.
External Factors Influencing the Market
The U.S. President, Donald Trump, accused China of violating a trade agreement between the two countries by not lowering tariffs as agreed. This accusation came at a time when trade negotiations between the U.S. and China appeared stalled.
Furthermore, a federal appeals court decided to reinstate Trump’s tariffs after a trade court ruled on Wednesday that the U.S. president had overstepped his authority and ordered him to halt nearly all of them.
Anticipation of Mexican Judicial Elections
Investors are closely watching the upcoming judicial elections in Mexico, scheduled for this Sunday. Voters will choose from over 5,000 candidates competing for more than 840 positions, including Supreme Court justices and magistrates.
Key Questions and Answers
- What is the main reason for the recent decline in Mexico’s stock market? The fall was influenced by news from the United States, specifically President Donald Trump’s accusations against China regarding trade tariffs, as well as the restoration of Trump’s tariffs by a federal appeals court.
- Who are the key players mentioned in this article, and why are they relevant? Carlos Slim Domit is a prominent Mexican business magnate whose investments, including Grupo Carso and Grupo Financiero Inbursa, significantly impact the Mexican stock market. His companies experienced substantial drops in their stock values during this session.
- What are the upcoming Mexican judicial elections, and why are they noteworthy? The upcoming elections on this Sunday will see Mexican voters choose from over 5,000 candidates for more than 840 positions, including Supreme Court justices and magistrates. These elections are significant as they will shape the country’s judicial landscape.
