The Mexican Stock Exchange closes with Losses for Second Consecutive Session

The Mexican Stock Exchange (BMV) closed Tuesday with losses for the second straight session, as local indices extended profit-taking amid heightened focus on third-quarter corporate earnings reports.

The benchmark S&P/BMV IPC fell 0.84% to 52,368.69 points, while the FTSE BIVA index dropped 0.87% to 1,075.44 units.

Within the main index, most stocks ended lower. Notable declines included Kimberly-Clark, which lost 4.31% to 30.86 pesos, and Quálitas, down 3.95% to 144.05 pesos. In contrast, Volaris stood out among gainers, rising 1.22% to 14.16 pesos.

Investors remain focused on corporate earnings, with reports expected from key companies such as Alfa, Chedraui, Cuervo, Gruma, and Becle (Cuervo). Additionally, retail sales data from Mexico will be closely monitored for signs of economic momentum.

In other news, U.S. telecom giant Verizon reported a net profit of $3.31 billion for Q3 2024, a 30.6% decline compared to the same period last year. The company’s revenue remained flat at $33.33 billion, as a 1.7% increase in service revenue to $27.99 billion was offset by an 8.1% drop in equipment sales, which fell to $5.34 billion.

Market sentiment remains cautious, with investors navigating mixed earnings results and macroeconomic challenges.

Also, after peaking at 9.4% during the third quarter of 2022, global inflation is projected to decline to 3.5% by the end of next year, slightly below pre-pandemic levels.

The International Monetary Fund (IMF) notes that the global economy has shown remarkable resilience throughout the disinflationary period, which began in 2021. However, it cautions that uncertainty remains regarding how countries will manage their monetary and fiscal policies to achieve stability.

The IMF emphasizes that while inflationary pressures are easing, the challenge lies in ensuring coordinated policy adjustments to avoid economic disruptions and maintain steady growth.