Record highs were reached in the stock markets of Brazil and Mexico on Thursday, driven by signals from the U.S. Federal Reserve indicating lower interest rates in 2024 and monetary policy decisions in the respective Latin American nations.
In Brazil, the surge in stocks was influenced, in part, by the central bank’s rate cut on Wednesday evening. Board members suggested that the 50-basis-point cuts would extend beyond the upcoming January meeting. Brazil’s benchmark equity index, Bovespa, closed up 1.06% at a new high of 130,842.09 points, following an intraday record of 131,259.81—surpassing the previous records set in June 2021. The positive session was further boosted by a 2.17% increase in Petrobras’ shares, aligning with the upward trend in oil prices.
Meanwhile, Mexico’s primary stock index achieved a historic close at 57,036.42 points, marking a 3.39% increase. The index reached an intraday high of 57,077.52 points during trading. The boost was attributed to Mexico’s airport operators, particularly after Grupo ASUR unveiled details of its 2024-2028 master development plan.
Earlier today, the Bank of Mexico unanimously opted to keep the nation’s interest rate steady at 11.25%, indicating a commitment to maintaining the existing policy for an extended period.
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