Trump’s speech reassures the markets

The virtual speech given by the President of the United States, Donald Trump, at the World Economic Forum in Davos, Switzerland, was the catalyst for the behavior of the currency and oil markets this Thursday.

The Mexican peso registered a daily appreciation of 0.75 percent, equivalent to 15.34 cents against the US currency, to close at 20.3228 pesos per dollar spotits second best level so far this year.

Trump said he will do everything possible to lower interest rates in the United States as soon as possible, and although the Federal Reserve (Fed) is autonomous, It’s good news because tariffs generate inflation, so if you want the cost of credit to go down soon, you can’t put tariffs in early.explained Juan Mussi, partner at Alpha Patrimonial.

According to data from the Bank of Mexico, the exchange rate operated between a maximum of 20.5700 units and a minimum of 20.2820 units.

The dollar weakened slightly this Thursday, since according to the DXY, which measures its behavior against a basket of six international currencies, it fell 0.01 percent, to 107.96 points.

Meanwhile, crude oil fell sharply, more than one percent, after the magnate’s statements in Davos, as he said that he would ask Saudi Arabia and other countries of the Organization of Petroleum Exporting Countries (OPEC) to reduce the cost of crude oil.

Texas intermediate crude oil (WTI) closed yesterday with a drop of 1.09 percent, to $74.62 a barrel. Brent for delivery in March fell 0.9 percent, to $78.29. The Mexican mix closed at $70.57.

They like incentives

After Trump announced that he will reduce corporate tax rates on products manufactured in the United States, Wall Street gained new vigor.

The S&P 500 index closed at a record high yesterday, as investors evaluated a mixed set of business results and digested the tycoon’s comments.

The S&P 500 gained 0.53 percent, to finish at 6,118.72 points, and the Nasdaq rose 0.22 percent, to 20,53.68 points. The Dow Jones Industrial Average increased 0.93 percent, to 44,565.26 points.

The Mexican Stock Exchange gained 0.22 percent, equivalent to 110.33 points, to close at 51 thousand 54.91 units.