The global stock markets and the emerging market currenciesamong them the Mexican pesoreported heavy losses yesterday, given the weak figures of the American economywho alerted the investors. In Asiathe bags began this Friday with a collapse led by the Japan stock index.
In addition, The volatility It was fired and the Treasury bond rate The 10-year rate stood at 3.97 percent, its lowest level in six months, following the data from the manufacturing and job applicationswhich raised concerns about the situation of the largest economy in the world.
The falls on Wall Street were led by the Nasdaqwith 2.30 percent, followed by declines of 1.37 percent for the S&P 500Meanwhile he Dow Jones fell 1.21 percent.
The wave of losses extended to the Mexican market, where both stock markets fell 1.27 percent. S&P/BMV IPCof the Mexican stock exchangeended at 52 thousand 417.48 units, while the FTSE-BIVAof the Institutional Stock Exchangereached 1,071.08 points.
Asian disaster
In other latitudes, the 2.68 percent fall in the FTSE Mib stood out, of the Itali baga, while at the opening this Friday the Japan’s Nikkei 225 plummeted 4.89 percent; Kospi of Corea fell 3.14 percent, and the Hang Sengof the Hong Kong Stock Exchange, lost 1.89 percent.
“Instead of getting investors excited about potential rate cutsthe data apparently made them run to take refuge in stocks and fixed incomeconcerned about the results of Amazon and Apple later and the employment report this Friday,” said Joe Mazzola, a strategist at Charles Schwab.
Jorge Gordillo, director of economic analysis at CIBanco, He explained that the red boards are a response to the economic information batterywhich normally the market likes when it’s bad, but since the numbers came out so bad it turned around.
“Data like this are beginning to raise concern about the possibility that a crisis is taking place further weakening of the economybut it’s all still speculation, only that the market It becomes more sensitive because they already have a position by betting on a cut, which if it does not happen they would lose,” he added.
The next catalyst in investors’ sights will be revealed today, with the employment report for the American economyfor which the survey of Bloomberg expects a change in nonfarm payrolls of 175 thousand and an unemployment rate of 4.1 percent.
“The Fed has made comments about being headed for a drop in rates from September and in that sense, today’s data should be on track to that, not so solid in terms of the positions createdso that the central bank have a greater basis to be able to begin to normalize the monetary politics“, he stressed Armando Rodriguez, CEO of Signum Research.
For its part, Amin Vera, Investment Director at INVALA, He anticipated that what could move the market would be a positive surprise in the labour market figures.
“If he unemployment report If it comes out much lower than estimated, it could cause an immediate rebound, but if a figure comes out that is around estimateseither up or down, but for a reasonable distance, we should see a behavior like the one we have been seeing, that is, a moderate rebound and then more downward adjustments; we will continue to see a trend of high volatility,” he said.
Weight, around 19
He lower appetite for risky assets It also had an impact on the foreign exchange operationswhich placed the Mexican peso at its worst level since March 2023.
According to emerging currencies rankinghe Mexican peso was the third most depreciated currencyposting a loss of 0.75 percent or 14.01 cents, compared to its previous close, as data from the Bank of Mexico They indicated that the exchange rate reached a parity of 18.7721 units per dollar.
However, in after-hours trading, the exchange rate was approaching 19 units, trading at 18.9166 pesos, according to Bloomberg.
