Market Overview
Mexico’s stock market experienced its worst day since June of the previous year, mirroring significant declines in its U.S. counterparts. The prevailing concern was a potential global recession sparked by shifts in international trade dynamics.
Key Developments
- S&P/BMV IPC: The leading index on the Bolsa Mexicana de Valores (BMV) dropped by 4.87% to 51,452.73 points.
- FTSE BIVA: The index from the Bolsa Institucional de Valores (Biva) fell by 4.81% to 1,046.80 points.
Stock Performance
Most stocks within the reference index closed with losses. Notable declines included Industrias Peñoles (-14.85%), GCC (-10.67%), BanBajío (-8.29%), and Inbursa (-7.61%).
Market Context
The local markets had shown strong gains the previous day, following Mexico’s exclusion from a round of U.S. tariffs due to the TMEC. However, these gains were erased as China’s response raised recession fears.
Expert Analysis
“For Mexico, the blow is double: the country has high commercial exposure to the U.S., a U.S. recession would reduce demand for Mexican exports and likely see capital outflows from emerging markets.” – Maximiliano Saldaña, Capitaria Analyst
Market Summary
Following this steep decline, the local market lost its weekly gains. The S&P/BMV IPC index now shows a 3.24% drop, aligning with strong reactions on Wall Street. Despite these falls, the index still registers a year-to-date gain of 3.92%.
