Mexico IPC index holds steady despite weak ecnomy reports

Early in the day on Wednesday, the IPC index in Mexico was holding steady at 14,552 after weak economic reports from Tuesday had stocks on an up and down path. The finance ministry had reported on Tuesday that the Mexican economy had grown by 3.1 percent in the second quarter, much less than the 4 percent growth in the same period last year.

That level of growth had been predicted for the second quarter this year, but last week the estimate was lowered to 3.8 percent, still higher than the actual figure. That report and a sell off of shares of America Movil sent Tuesday’s IPC index down by nearly 2 percent. In Wednesday’s trading, America Movil was up 0.52 percent to 11.68 pesos, while it’s New York-traded shares gained 0.69 percent to $22.03. However, construction firm ICA lost 0.22 percent in early trade to 4.50 pesos.

Meanwhile, the peso was slightly down in relation to the US dollar after the Mexican 28-day T-bill yield dropped 3 basis points to 9.58 percent in an auction on Tuesday. The Mexican currency was trading at 10.6020 pesos to the dollar early on Wednesday.

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