Uncertainty about economic expectations continues to put pressure on international financial markets as we await the Federal Reserve’s decision on monetary policy and its inflation outlook.
The wholesale price of the dollar in international markets stands at 20.54 pesos, 8.9 cents or 0.43% higher at Monday’s closeAs a result of the above, the Mexican peso reports a depreciation of 89 cents or 4.5% so far this month of June.
The Dollar Index dawns with a depreciation of -0.02% (an appreciation during the last week of 2.1%), attentive to the Producer Price Index in the United States.
Stock markets wake up with a negative bias, but with S&P 500 futures rising, government bond yields mixed and the dollar little changed. This dynamic occurs before investors who expect more aggressive hikes by the Fed to curb the highest inflation in 40 years in the face of the monetary policy decision tomorrow, Wednesday, Banorte analysts comment.
US stock futures rose slightly on Tuesday morningas the major averages stabilized following a drop that sent the S&P 500 into its first bear market since the height of the pandemic.
Contracts in the S&P 500 rose about 0.2% during early trading, paring some of Monday’s losses after the index fell to its lowest level since January 2021.
The S&P 500 entered its first bear market since March 2020 as its closing price on Monday, putting it more than 20% below its recent closing high since January. Contracts on the Dow and Nasdaq also advanced during premarket trading.
Volatility resurfaced in markets at the start of the week as investors scrambled to price in a greater likelihood of a further interest rate hike by the Federal Reserve in its race to tackle inflation.. Market participants expect the Federal Open Market Committee to raise interest rates by 75 basis points this week.