In Mexico, the country’s stock markets were able to close at levels not seen in a session with economic indicators since October 3, 2018.
The Prices and Quotes Index (CPI) is up 0.46 per cent at 49,92 points. Meanwhile, FTSE BIA advanced 0.51 per cent to 1004 units.
This quarter comes at the beginning of the quarterly earnings season.
JPMorgan analysts, led by Amy Shayo, consider Mexico to be a great place to outperform the region, highlighting the country’s financial position and high growth in the United States, which could lead to a local recovery.
During the session, it was announced in Congress that the bill to increase government controls on the advanced fuel market would be the latest blow to the country’s energy opening for private companies. The Senate unanimously approved President Andres Manuel Lopez Obrador’s proposal to extend control over the distribution, import and sale of petrol and diesel, with 47 votes in favor and 65 votes in favor.
The law allows the suspension of fuel market operators for national or energy security reasons, and allows state-owned companies to acquire their facilities.
In the morning economic data, inflation released in the first half of April, which was surprisingly upside, reached 0.06 per cent in the two-week period, rising to 0.14 per cent in the same fortnight since April 2009. At the annual rate, the pressure on prices reached 6.05 per cent, the highest inflation rate since 6.85 per cent in the second half of December 2017.
With the release of today’s data, the inflation forecast for April is expected to rise significantly from 5.2 per cent to 6.0 per cent year-on-year, taking into account the two-week inflation rate of 0.13 per cent in the second half of the month. Similarly, inflation is expected to adjust to 4.2 percent to 5.0 percent by the end of this year, ”said Gabriel Siller, director of economic and financial analysis at the Banco site.
In addition, the National Institute of Statistics and Geography released the results of the National Business and Employment Survey (ENOE) for the month of March 2021. The economically active population (EAP) increased by 0.5 million in March compared to the previous month, reaching a total population of 57.2 million, 1.5 million less than in March 2020. Of the 12 million people who left the EAP in April last year, 10.6 million have returned.
On Wall Street, the equilibrium was negative after the dollar showed some strength after the economic data, indicating a one-sided session of markets towards the positives in an environment where the European Central Bank and Christine Lagarde are reviewing the monetary policy decision.
The Dow Jones Industrial Average fell 0.94 percent to 33,815 points; The S&P 500 index was down 0.92 percent at 4,134 and the Nasdaq was down 0.94 points at 13,818.
In the bond market, the 10-year return on securities was 1.54 percent. Investors are wary of the growing case of COVID-19.
The European Central Bank (ECB) maintained its monetary policy unchanged, with Christine Lagarde pointing out that the bank would also maintain assets worth 1. 1.85 billion, confirming that it will be buying at a higher rate for the quarter.
The banker noted that short-term opportunities are clouded by uncertainty.
Investors keep an eye on corporate reports, which highlight companies in the technology and finance industry and news surrounding the epidemic.
In terms of economic indicators, data from the Chicago Fed National Index in the United States rose 1.71 percent in March.
On the other hand, in the week ending April 17, 576 thousand new applications for unemployment support were reported, down 39 thousand from the previous week’s revised level. Consecutive applications for unemployment support fell from 3.708 to 3.674 million, from those who already received support or continued to wait.
In Japan, Prime Minister Yoshihide Suka recommended that some regions, including the cities of Tokyo and Osaka, apply for a state of emergency as the number of new cases of the virus increases. Preventing explosions in this country has become more appropriate for the Japanese government because the Olympics will take place in a few months. In addition, India has reported 314 thousand 835 new corona viruses in the last 24 hours, breaking the US record of 314 thousand 312 cases on December 21, 2020. The World Health Organization points out that other countries have seen a significant increase in the number of cases in Argentina, Turkey and Brazil.