Peso and BMV move into volatile session after US inflation data

The peso and the Mexican stock exchange (BMV) advanced on a erratic day this Thursday following the release of better-than-expected figures on inflation in the United States, data that eased bets on markets after the Federal Reserve (Fed) began cutting interest rates in March as expected.

In another report on the US economy released this morning, initial claims for state unemployment benefits fell more than expected this week.

The peso was quoted at 16.9114 per dollar in late trade, up 0.23% from the Reuters reference price on Wednesday, though it weakened by 0.68% to 17.0650 units during the day.

Richmond Fed Chief Thomas Barkin said the reversal came after December’s data did little to clarify the inflation path for US central bank officials considering the possible start of rate cuts this year.

For now, the market is awaiting the release of December producer price data from the United States on Friday, looking for new signals about the direction of monetary policy.

Read: US inflation rises three-tenths in December and closes 2023 at 3.4%

The stock market advanced 0.22%

The benchmark S&P/BMV IPC stock index rose 0.22% to 55,438.75 points, erasing its early losses, with a volume of 169.5 million securities traded, which, although recovering in recent sessions, is still below the previous daily average of 300 million. . Holiday period.

Analysts agreed that markets are also eyeing the start of the fourth-quarter corporate reporting season on Friday, along with results from several financial sector companies.

Papers of telecommunications giant America Movil advanced 1.77% to 15.56 pesos, with papers of pharmaceutical company Genomma Labs, which added 1.53% to 13.94 pesos.

In the debt market, the 10-year bond yield fell four basis points to 9.08%, while the 20-year rate fell two basis points to 9.18%.

With information from Reuters

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