The Mexican peso and the stock market showed losses on Wednesday, while investors’ doubts about the stability of the global banking sector grew, helped by bad news from Europe, which increased interest in the market. buying a shelter.
The Mexican peso traded at 18.97 to the dollar, depreciating 2.02% from its Reuters target price on Tuesday, after breaking the psychological 19-peso barrier several times during the day and wiping out all of the day’s gains.
“Yesterday’s return to 18.60 was a highly volatile technical natural return and provided short-term support,” Intercam said in a note sent to clients.
For its part, the underlying stock index of the Mexican Stock Exchange (S&P/BMV IPC) recorded a drop of 1.15% to 52,085.60 points, following the same trend as in other Latin American markets.
The banking sector led the decline in the Mexican stock market. Regional suffered a significant loss of 7.3 percent to 135.79 pesos, followed by Banorte and Banco del Bajío, which fell more than 4.5 percent to 138.28 and 62 pesos, respectively.
In Europe, uncertainty and pressure on the banking sector grew, and its shares suffered losses after Swiss Credit Suisse’s financial reports revealed “weaknesses” and its largest shareholder indicated that it would no longer provide financial support to him.
“Risk aversion came after National Bank of Saudi Arabia Governor Al Hudayri said in an interview that they would no longer support Credit Suisse if it needed liquidity,” said Gabriela Siller, head of research at Banco Base.
Source: Aristegui Noticias
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
