The Mexican Stock Exchange Extends Decline for Fourth Consecutive Day

The Mexican stock exchanges are trading with losses this Wednesday morning, extending a negative streak for a fourth straight session.

This downturn comes in response to the news that U.S. inflation accelerated in October, aligning with forecasts and raising concerns among investors.

The S&P/BMV IPC, the benchmark index of the Mexican Stock Exchange (BMV), which tracks the performance of the most traded local stocks, is down by 0.54%, standing at 50,819.53 points.

Similarly, the FTSE BIVA index of the Bolsa Institucional de Valores (Biva) dropped 0.28% to 1,045.33 points.

Within the main index, most stocks are trading in the red. Notable decliners include Gentera, which fell 2.22% to 25.13 pesos, Arca Continental, which slid 1.60% to 169.33 pesos, and Cemex, down 1.15% to 11.150 pesos.

Analysts indicate that the Mexican stock market could see its fourth consecutive day of losses, given the challenging outlook. The S&P/BMV IPC is expected to test the critical support level of 50,000 points, as investors remain cautious due to global inflation concerns, fluctuating commodity prices, and the potential for further interest rate hikes both internationally and by Banxico (the Bank of Mexico).

The broader market sentiment has been weighed down by persistent inflationary pressures and geopolitical uncertainties, which are prompting fears of tighter monetary policies.

Investors are closely watching how these factors could influence future market movements and the performance of key sectors like financials, consumer goods, and construction.