2024-08-05 17:40:55
Mexico record a Black Monday in your economy today, August 5thSince the Mexican Stock Exchange (BMV) fell 1.8% at the start of tradingwhich was in line with global markets in fear of a US recession.
The Unemployment rate in the United States rose 4,3% in July 2024 and was the highest since October 2021, a fact that generated concern in the Federal Reserve (Fed) as well as reactions in the main Wall Street Indices, and in the Asian and European stock indices.
In this context, the S&P 500 index fell 168.56 pointsor 3.15 percent, to 5,178.00 units, while the Nasdaq fell 624.98 pointsor 3.73 percent, to 16,151.19 units. In the same sense, the Dow Jones Industrial Average fell 1,094.07 pointsor 2.75 percent, to 38,643.19 units.
Mexican Stock Exchange falls 1.8% today, Monday, August 5; it has had 3 consecutive days of losses
The Mexican Stock Exchange registered a fall of 1.8% today, Monday, August 5; the leading S&P/BMV IPC .MXX index, which includes the 35 most traded stocks on the local market, fell to 51,302.87 points, which translated into a third consecutive day of losses.
This fall is led in Mexico by the mining stocks Peñoles Industries with 5.32% less to 255.02 pesosfollowed by those of the pharmaceutical industry Genomma Lab, which fell 4.96% to 18.01 pesos.
In that relationship of ideas, the Mexican peso suffered a depreciation of 2%since today, Monday, August 5, it is trading at 20.16 units per dollar, its highest level since October 2022.
AMLO highlights Mexico’s finances in the face of a possible recession in the United States; “we can hold out a little longer”
In front of a Possible recession in the United States and the fall of the Mexican peso against the dollar, President Andrés Manuel López Obrador (AMLO) highlighted Mexico’s financesa fact for which he said that there is a “margin of protection” regarding this issue.
“This is today, the peso is at 19.55 (per dollar). We still have, so, we have a margin of protection, it does not affect us so much because our finances are very strong.”
AMLO
In this regard, the president explained that One of the reasons why Mexico can resist This drop is the reserves accumulated in the Bank of Mexico throughout the six-year term:
“We are certainly neighbors of the United States, there is economic integration and it affects the whole world, it affects Japan, everywhere, but we can resist a little longer for two reasons: one, is that we have sufficient, record-breaking reserves from the Bank of Mexico, we have never had so many reserves as we do now.”
AMLO
He also highlighted the strengthening of the peso during the current administrationA fact that contrasts with the results delivered by the PRI and PAN governments since the Luis Echeverría administration, that is, for more than 5 decades.
“And the other thing that helps us is that throughout the six-year term, the peso has appreciated, the peso has strengthened. We have not experienced what happened with Echeverría, López Portillo, Miguel de la Madrid, Salinas, Zedillo, Fox, Calderón, Peña Nieto. In all those governments the peso was devalued and in ours it has not devalued in the six-year term, it is the first time in 50 years that our peso has not devalued. Of course, we were in first place worldwide in terms of the strengthening of the peso in relation to the dollar, with what is happening as of Thursday, the Swiss mark occupied first place, but anyway”
AMLO
2024-08-05 17:40:55