Peso and Mexican Stock Exchange touch their best level in more than two weeks

The peso and the Mexican Stock Exchange (BMV) advanced on Tuesday and reached levels not seen in more than two weeks driven by a better environment for global risk assets as concerns about the situation of the banking sector eased.

The good mood began after the announcement on Monday that the American First Citizens BancShares seized the assets of the collapsed Silicon Valley Bank (SVB). Attention now shifts to the start of a series of Senate hearings to address the bankruptcies of SVB and Signature Bank.

Adding to the optimism, in the morning the consumer confidence index Americans who unexpectedly increased in March, although he also showed some doubts on their part regarding the labor market.

The national currency quoted at 18.2354 per dollarwith an advance of 0.54% against the reference price of Reuters Monday, in its fourth straight day of gains.

“Investors are hopeful that the worst of the banking crisis is over,” CI Banco said in an analysis note. “As the global commercial banking situation improves, there is room to see levels below 18 again in the coming days/weeks.”

At the local level, the gaze of the participants is set on the monetary policy decision of the central bank (Banxico) on Thursday, in which it is expected to announce a 25 base point increase in the key interest rate.

The benchmark stock index S&P/BMV CPI it rose 0.84% ​​to 53,293.27 points, in its second consecutive session of increases, in which at times it exceeded 1% upwards.

The titles of Penoles Industries They led the advance, with 4.8% more to 269.73 pesos, followed by Corporación Inmobiliaria Vesta and Operadora de Sites Mexicanos that added more than 3% each.

In the debt market, the central bank was expected to release later the results of its weekly auction of government securities in which it plans to place 50,000 million pesos (about 2,740 million dollars) in Treasury Certificates (Cetes).

Intermediaries anticipate that the primary yields of the titles will be placed with mixed changes compared to their previous auction.