BMV spins two days down on fears of global recession

The share prices in Mexico They fell this Thursday due to fears of a global recession due to the tightening of monetary policy by the main central banks.

The Bank of Mexico (Banxico) announced on June 23 that it raised the target for the overnight interest rate by 75 basis points to bring it to 7.75% and warned that it intends to continue raising it, amid worsening inflation expectations. .

The reference index of the Mexican stock exchange (BMV), the S&P/BMV IPCwhich groups the 35 most traded shares in Mexico, closed down -1.03% to a level of 46,657.88 units.

The decline in the local market this Thursday was led by the titles of two of the main mining companies in the country.

S&P/BMV IPC

The titles of Penoles Industriesone of the world’s largest producers of refined silver, led the losses with 8.67% less to 187.61 pesos, followed by Grupo México, one of the world’s leading copper producers, which subtracted 5.71% to 81.52 pesos.

The index FTSE BIVAof the Institutional Stock Exchange (Biva), lost -0.93% and ended operations at 966.57 units.

The local square has been one of the most affected by the latest statements by US authorities about a possible recession due to the maneuvers of the Federal Reserve (fed) to control inflation, according to experts from Meta-analysis.

Inflation in Mexico has no brake

Despite the government’s efforts and the tightening of monetary policy, consumer inflation registered, in the first half of June, continued to accelerate, according to data published by the National Institute of Statistics and Geography (Inegi).

In the first fortnight of June, the National Consumer Price Index (INPC) showed a monthly advance of 0.49%, with which, at an annual rate, inflation reached a level of 7.88 percent.

This meant an acceleration in the level of inflation since in the second half of May, the increase in prices at the national level averaged 7.72 percent.

In recent months, inflation has turned on the red lights worldwide. The high levels it has presented, and which affect lower-income people to a greater extent, have generated a tightening of monetary policy.

(With information from Belén Saldívar and Reuters.)

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