The Mexican Stock Exchange (BMV) and the Institutional Stock Exchange (Biva) ended October with losses, while the Wall Street stock indexes closed with gains.
The BMV ended at a level of 51,309.84 points, with a 0.15% loss in the tenth month of the year, while Biva lost 0.33% and closed at 1,057.59 points.
In New York, the Dow Jones industrial average closed with a rise of 5.84% at 35,819.56 points, the NASDAQ Composite technology advanced 7.27% to 15,498.39 points and the S&P 500 closed at 4,605.38 points and an advance of 6.91% in October.
Luis Gonzali, Vice President and Senior Portfolio Manager at Franklin Templeton, said that “after a difficult September, October was good for the US stock markets, unlike in Mexico, which ended in the red. The difference was in technology companies, a strong boost for Wall Street in a sector in which Mexico does not participate ”.
In fact, in October, the United States indices led the gains among the main stock exchanges, followed by the Hang Seng index, of Hong Kong, with a rise of 3.26%, although in the year it had a fall of 6.81% weakened by the effects from Evergrande, the real estate giant that defaulted on its financial obligations.
In Europe, stocks performed moderately. The CAC 40 of France gained 4.76%, the FTSE 100 of London rose 2.13%, the Ibex 35 of Spain advanced 2.97% and the Dax of Germany grew 2.81 percent.
In Latin America, the Bovespa index of Brazil lost 6.74%, while the Merval of Argentina rose 8.01% and the Colombian Stock Exchange, the Colcap, advanced 2.36% in October.
Some of the pressures that will continue for the market is the rise in raw materials that will continue, both at the end of this year and at the beginning of 2022. In fact, the issue is far from being resolved, it will be difficult to control inflation levels ” Gonzali said.
Janneth Quiroz, Deputy Director of Analysis at Monex, said that “there is a lot of uncertainty in the international context, which moves the stock markets depending on each country. In emerging countries we have seen greater caution due to fears of higher inflation ”.
Exchange volatility
The peso-dollar exchange rate, meanwhile, closed the month at 20.6090 units, with a slight appreciation of 0.16% compared to the 20.6420 pesos at which it closed last September.
It ended the last week of October with a 2.13% depreciation, after two consecutive weeks of appreciations.
“The stability of the exchange rate during October was initially due to a normalization of the monetary policy of the United States Federal Reserve, however, higher inflationary pressures and a slowdown in the pace of global economic recovery affected the currency Mexicana ”, said Gabriela Siller, Director of Analysis at Banco Base.
Month of highs for crude oil
Oil prices ended higher in October, reaching the highest prices since 2014 and putting pressure on the market with higher inflation at the international level.
The West Texas Intermediate (WTI) gained 11.38% to 83.57 dollars per barrel, while the benchmark Brent from the North Sea advanced 7.46% to sell at 84.38 dollars and the Mexican mix rose 8.91% and sold at 77.60 dollars a barrel.
In addition, crude oil accumulates a strong upward trend so far in 2021. WTI has a gain of 72.24% so far in 2021, while Brent advances 62.90% and the Mexican mix 64.55 percent.
The energy crisis has supported the demand for petroleum derivatives as substitutes for electricity generators and the market expects that demand may increase even more as winter approaches ”, wrote the Analysis area of Banco Base in a report.
Regarding other raw materials, the price of gold closed October at 1,782.76 dollars per ounce, an increase of 1.50%, while silver rose 6.35% to 23,968 dollars per ounce. Zinc increased its price 13.78%, while aluminum decreased 4.26% to 2,735.25 dollars per ton.
For its part, corn closed October at 5.38 dollars per bushel, an increase in its price of 6.01%, while the price of soybeans ended at 12.29 dollars per bushel, a slight loss of 0.50%, while wheat closed at $ 7.58 a bushel, up 6.55 percent.
“Most estimates point to maintaining the super cycle of raw materials, which would cause the rise in prices of these products to continue, at least until the first half of 2022,” commented the area of economic analysis of Black Wallstreet Capital. .
Reference-www.eleconomista.com.mx