Mexican Stocks End Lower, Peso Weakens After Yellen Comments
December 02 2015 - 5:06PM
Dow Jones News
By Juan Montes
MEXICO CITY--Mexican stocks slipped Wednesday, while the peso
weakened against the dollar, after U.S. Federal Reserve chairwoman
Janet Yellen fueled expectations that interest rates would be
raised next months.
The IPC index of leading issues closed down 1.3% at 41750 points
on volume of 175 million shares worth 5.6 billion pesos ($337
million).
Among blue chips, wireless carrier America Movil fell 3% to
13.33 pesos while bread maker Bimbo dropped 0.7% to 47.25 pesos.
Cement giant Cemex closed down 1.8% at 10.15 pesos.
For a second consecutive session, shares of Mexican builder ICA
plummeted. The builder fell 22% to 3.2 pesos after it said Monday
it will take a 30-day grace period on some interest payments.
On Wednesday, Ms. Yellen said the U.S. economy has recovered
substantially, warning that waiting too long to normalize the
monetary policy could be risky. The comments reaffirmed the belief
that the Fed will raise interest rates in December.
Prospects of a Fed rate increase are making emerging-market
currencies less attractive for investors, and the Mexican peso lost
some ground against the U.S. on Wednesday.
The peso closed in Mexico City at 16.57 pesos, according to
Infosel, compared with 16.5350 pesos at the close Tuesday.
Write to Juan Montes at juan.montes@dowjones.com
(END) Dow Jones Newswires
December 02, 2015 16:51 ET (21:51 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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