La Jornada: Mexican markets open with gains due to oil fall

In a key week due to the Federal Reserve’s monetary policy decision tomorrow, and given the easing of geopolitical tension, Wall Street had started with significant gains this Monday, but spirits deflated in the final stretch of the day. Investors began to sell dollars, amid a greater appetite for risk due to the fall in oil, but their downward march also slowed, and the US currency ended with a slight advance.

In turn, the Mexican peso showed more resilience, as an emerging currency, and registered a daily appreciation of 0.21 percent, until closing at 17.4473 pesos per dollar spot. The Mexican currency benefited from lower implied volatility and investor optimism related to the progress of diplomatic negotiations in the Middle East.

According to data from the Bank of Mexico, the exchange rate operated between a maximum of 17.4660 units per dollar and a minimum of 17.4200.

The DXY index, which measures the behavior of the dollar against a basket of six international currencies, recovered and rose 0.08 percent, to 101.39 units.

For its part, the Price and Quotation Index (CPI) advanced 1.17 percent yesterday, up to 67,157.91 points, with 33 of its 35 stations in positive territory.

Meanwhile, the Nasdaq ended with a drop of 0.18 percent, up to 24,932.08 points. The S&P 500 and the Dow Jones recorded a moderate gain of 0.02 and 0.51 percent, in that order.

In the midst of a collapse in oil prices, which moved away from the $100 barrier, which it surpassed until last Thursday, the SOX semiconductor index fell 2.2 percent, amid doubts about the pace of spending on artificial intelligence and reports that a state-backed Chinese company is developing machinery capable of competing.

“The day reflected a sectoral rotation: caution regarding valuations, investment in artificial intelligence and technological competition favored the search for opportunities in basic consumption, materials and communication services,” highlighted Enrique Covarrubias, chief economist and director of analysis at Actinver.