Factors Behind the 1.58% Decline in Mexico's S&P/BMV IPC on December 17, 2024

The decline in the Mexican stock market, specifically the S&P/BMV IPC, by 1.58% at the close of trade on December 17, 2024, can be attributed to several factors:

Economic Slowdown: The Mexican economy has been experiencing a slowdown throughout 2024. This slowdown is reflected in various economic indicators, including a weakening labor market and stalled consumption. The labor market, in particular, has shown signs of deceleration, with employment growth rates decreasing from 2.5% year-over-year to 1.6% in the last three months.

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Fiscal Deficit: The Mexican government's fiscal deficit is expected to increase substantially, which can create uncertainty and negatively impact investor confidence. This fiscal deficit is projected to be significant, potentially undermining economic stability and growth prospects.
Stock Market Performance: The Mexican stock market has been one of the worst-performing markets this year, with a decline of nearly 20%. This poor performance is compounded by recent losses in key sectors such as Healthcare, Materials, Industrials, Consumer Goods & Services, and Consumer Staples.
Global Economic Factors: Global economic uncertainties and fluctuations in international markets can also influence the performance of the Mexican stock market. For instance, the uncertainty surrounding the central bank's monetary policy and broader economic conditions can lead to investor caution and market volatility.
Sector-Specific Issues: Specific companies and sectors have also contributed to the market's decline. For example, the removal of major companies like Elektra from the S&P/BMV IPC index due to prolonged underperformance has had a significant impact on market sentiment and overall index performance.

In summary, the combination of a slowing economy, increasing fiscal deficits, poor overall stock market performance, global economic uncertainties, and sector-specific issues has led to the 1.58% decline in the S&P/BMV IPC at the close of trade on December 17, 2024.

Factors Behind the 1.58% Decline in Mexico's S&P/BMV IPC on December 17, 2024

The decline in the Mexican stock market, specifically the S&P/BMV IPC, by 1.58% at the close of trade on December 17, 2024, can be attributed to several factors:

Economic Slowdown: The Mexican economy has been experiencing a slowdown throughout 2024. This slowdown is reflected in various economic indicators, including a weakening labor market and stalled consumption. The labor market, in particular, has shown signs of deceleration, with employment growth rates decreasing from 2.5% year-over-year to 1.6% in the last three months.

Preview

Fiscal Deficit: The Mexican government's fiscal deficit is expected to increase substantially, which can create uncertainty and negatively impact investor confidence. This fiscal deficit is projected to be significant, potentially undermining economic stability and growth prospects.
Stock Market Performance: The Mexican stock market has been one of the worst-performing markets this year, with a decline of nearly 20%. This poor performance is compounded by recent losses in key sectors such as Healthcare, Materials, Industrials, Consumer Goods & Services, and Consumer Staples.
Global Economic Factors: Global economic uncertainties and fluctuations in international markets can also influence the performance of the Mexican stock market. For instance, the uncertainty surrounding the central bank's monetary policy and broader economic conditions can lead to investor caution and market volatility.
Sector-Specific Issues: Specific companies and sectors have also contributed to the market's decline. For example, the removal of major companies like Elektra from the S&P/BMV IPC index due to prolonged underperformance has had a significant impact on market sentiment and overall index performance.