Stock markets in Mexico are reaching levels not seen in more than two years – El Financiero

In Mexico, the country’s stock markets were able to close operations at levels not seen since October 3, 2018, in a session in which economic indicators returned.

The price index and price quotations (CPI) rose by 0.46 percent, to 49,92 points. Meanwhile, the FTSE BIVA Index advanced 0.51 percent to 1,004 units.

The increase comes at the start of the quarterly earnings season.

JPMorgan analysts led by Emy Shayo see Mexico in a better place to outpace the region, highlighting the country’s financial condition and higher growth in the US that will boost domestic recovery.

It was announced during the session that a bill to increase government controls on the fuel market was presented in Congress in the latest blow to the country’s energy opening up to private companies. With 65 lawmakers in favor, 47 against, and 6 abstentions, the Senate generally approved President Andres Manuel Lopez Obrador’s proposal to broaden oversight over the distribution, import, and marketing of gasoline and diesel.

The law would allow the government to suspend permits for fuel market operators for reasons of national or energy security, and allow state-owned companies to take over their facilities.

In the morning economic data, inflation was published in the first half of April, which surprised the upside, reaching a semi-monthly rate of 0.06%, the highest for the same two weeks since April 2009, when it was located at 0.14%. . Annually, price pressure reached 6.05%, the highest rate of inflation since the second half of December 2017, when it reached 6.85%.

With the release of today’s data, inflation expectations for April are rising dramatically from 5.2% at an annualized rate to 6.0%, given the bimonthly inflation of 0.13% in the second half of the month. Likewise, year-end inflation expectations have been revised upwards, from 4.2 per cent to 5.0 per cent, ”says Gabriela Seller, director of economic and financial analysis at Banco Base.

In addition, the National Institute of Statistics and Geography published the results of the National Survey of Occupations and Employment (ENOE) corresponding to March 2021. The Economically Active Population (EAP) increased by 0.5 million in March compared to last month, reaching a total of 57.2 million people, down 1.5 million from March 2020. Of 12 million people who left the East Asia and Pacific region in April of last year, 10.6 million returned.

On Wall Street, the balance was negative as the dollar showed some strength after the economic data, in an environment where the markets indicated a positive biased session and confirmed the correctness of the monetary policy decision of the European Central Bank and the Christine Lagarde conference.

The Dow Jones Industrial Average fell 0.94 percent to 33,815 points. The S&P 500 index fell 0.92 percent to 4,134 units, and the Nasdaq index fell 0.94 per cent to 13,818 points.

In the bond market, the average 10-year bond yield was 1.54%. Investors remain wary of the growing situation of COVID-19.

The European Central Bank (ECB) kept its monetary policy flat, and Christine Lagarde indicated that the bank will also maintain asset purchases for € 1.85 billion, which confirms that the purchases will take place at high rates in the quarter.

The banker noted that the short-term outlook is uncertain.

Investors are watching corporate reports, which highlight companies from the tech and financial sector and news about the pandemic.

Regarding economic indicators, in the United States data was released from the Chicago Fed National Index, which showed an increase of 1.71 percent during the month of March.

On the other hand, in the week ending April 17, 576,000 new jobless support claims were reported, down 39,000 from the revised level of the previous week. Continuing requests for unemployment support from those already receiving or continuing to wait decreased from 3.708 to 3.674 million.

In Japan, Prime Minister Yoshihide Suga recommended the application of a state of emergency in some regions, including the cities of Tokyo and Osaka, due to the increase in the number of new infections with the virus. Preventing an outbreak in this country has become of particular importance to the Japanese government, as the Olympic Games will be held in a few months. In addition, India recorded 314,835 new cases of Coronavirus during the past 24 hours, breaking that record for the United States of 314,312 cases on December 21, 2020. The World Health Organization indicated that other countries are also witnessing a significant increase In the number of casualties. The number of cases is Argentina, Turkey and Brazil.