The local indices decline following their counterparts in the United States, impacted by inflation data higher than expected.

The Mexican stock exchanges are experiencing significant losses in the mid-week session. Local indices are declining in line with their counterparts in the United States, affected by inflation data higher than expected in that country.

The main index, S&P/BMV IPC, of the Mexican Stock Exchange (BMV), which includes the 35 most traded local stocks, is down by 1.14% at 56,916.35 points. The FTSE BIVA, of the Institutional Stock Exchange (Biva), decreases by 1.20% to 1,165.84.

US Treasury bond yields surge, putting pressure on stock indices, after Consumer Price Index data came in higher than expected in March, complicating the outlook. The figures are unfavorable and cast doubt on the optimistic outlook given by the Federal Reserve. These data reinforce the idea that there is less opportunity to cut rates this year.

Within the benchmark index, almost all stocks are declining. Leading the declines are shares of Grupo Carso, down by 3.44% to 140.48 pesos, and Grupo BMV, down by 2.31% to a level of 34.33 pesos.

Investors are trying to hold onto expectations of three rate cuts in 2024, but it’s becoming increasingly difficult for them, given the strength of the US economy. In just three trading sessions, the BMV falls by 2 percent.