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Mexican Stock Exchange closes with highest profit of year

Mexico City, Mexico — On Wednesday, the Mexican Stock Exchange (BMV) closed with the highest profit of the year, finishing with a gain of 2.20 percent in line with US stock market indicators.

With preliminary figures, the main indicator of the local stock market, S&P BMV IPC finished in 43,404.76 units, which meant an advance of 932.51 points.

In the United States, the three main Wall Street indicators closed with gains, the Dow Jones with 4.53 percent, the Nasdaq with 3.85 percent and Standard & Poor’s 500 with 4.22 percent.

The peso fell, in line with other emerging currencies, due to the continuing uncertainty about the economic impact of the coronavirus and after data on job creation in the United States that exceeded expectations.

A cut in the rate by the US Federal Reserve on Tuesday to combat the economic impact of the rapid spread of the virus fueled fears that the scope of the consequences could be worse than expected and bets that the Central banks in the region could do the same.

In the afternoon, the currency traded at 19.52 per dollar with a 0.4 percent decline from 19.44 units of the Reuters reference price on Tuesday. In early operations, the currency gained more than 1.3 percent.

“The reality is that instead of reassuring investors, the Fed’s rate cut increased nerves in risky asset markets. In addition, we worry a little about the reaction that Banxico is going to have,” said CI Bank economist James Salazar.