Mexican stocks are extending bearish pressures during Tuesday’s session after Monday’s negative close, reflecting the growing uncertainty weighing on investors.
The benchmark stock index suffered a slight decline, driven by concerns over the volatility of the Mexican peso and doubts about the political landscape, especially with the upcoming U.S. elections.
The Mexican peso remains under pressure, affected by the possibility of a shift in trade relations with the U.S., which could directly impact corporate earnings. Companies highly exposed to exports and imports are particularly vulnerable to potential disruptions in trade agreements and the imposition of new tariffs on Mexican products.
Key sectors such as manufacturing and consumer goods are under the spotlight, as they could experience a rise in short-term volatility. Meanwhile, key economic data, such as retail sales in Mexico, will play a fundamental role in gauging market confidence in the coming days.
While stabilisation of the political climate and improved economic figures could revive appetite for Mexican assets, persistent uncertainty suggests that the stock market will likely remain in a volatile environment in the short and medium term. Investors will closely monitor these developments as the outlook evolves with clearer external risks..”
