The peso and the Mexican Stock Exchange (BMV) saw gains on Thursday despite a volatile day following higher-than-expected inflation figures in the United States. The peso was quoted at 16.9114 per dollar at the end of the day, with a 0.23% appreciation compared to the Reuters reference price on Wednesday. The reversal came after Richmond Fed Chief Thomas Barkin indicated that the December data did little to clarify the trajectory of inflation for U.S. central bank officials considering possible rate cuts this year.
The benchmark S&P/BMV IPC stock index also advanced 0.22% to 55,438.75 points, erasing its initial losses. This comes as the market has its sights set on the start of the fourth quarter corporate reporting season, particularly the results of some financial sector firms. The telecom giant América Móvil and pharmaceutical company Genomma Lab led the rise in stock prices, with the 10-year bond yield falling four basis points to 9.08% and the 20-year rate dropping two basis points to 9.18%.
Market analysts are now awaiting the release of December producer price figures from the United States on Friday to gain new signals about the direction of monetary policy. This comes after an erratic day in the market following the release of economic reports from the US.