Monday, May 29

Wall Street touches historic lows due to conflict between the US and Russia

The main indicators of Wall Street began the session this Monday with important decreases after the conflict between the United States and Russia intensified, which adds to the uncertainty about the decision of the monetary policy of the Federal Reserve (Fed) this week.

The Dow Jones falls 2.17 percent to settle at 33 thousand 520.16 units, its lowest level since June 18, 2021. The S&P 500 registers a drop of 2.01 percent, to stay at 4,309.42 units, the lowest level since last October 4. Meanwhile he Nasdaq decreases 3.01 percent to 13 thousand 964.34 points, reaching minimum levels not seen since May 19 of last year.

“On Wall Street, they anticipate a negative opening of the markets, waiting for more corporate information due to the reporting season, as well as the meeting that the Federal Reserve will hold this week. The above in the midst of geopolitical tensions due to the risk of an invasion of Ukraine by Russia,” said Rodolfo Navarrete, Vector’s economic advisor.

In Mexico, the indicators follow the same trend, since the S&P/BMV IPC falls 2.09 percent to register a level of 50 thousand 518.47 points, while the FTSE BIVA It fell 2.75 percent, trading at 1,37.98 units, which meant its lowest level since the first of December last for both indices.

“The stock markets start the week with negative movements where investors react to the increase in tensions between Russia and Ukraine, while focusing their attention on the Fed’s monetary policy meeting next Wednesday and on a greater flow of corporate reports in the following days, including those of some large technology companies (Apple, Microsoft and Tesla)”, Banorte analysts pointed out.

The international prices of Petroleum They present important falls due to a strengthening of the dollar due to the imminent takeoff of the Federal Reserve interest rate and geopolitical concerns between the United States and Russia.

The WTI falls 3.48 percent to stay at a price of 82.18 dollars per barrel and the Brent decreases 2.43 percent, to 84.96 dollars per barrel.

“Oil prices are under pressure to start the week dragged down by overall negative risk sentiment in commodity markets,” said Jens Pedersen, senior analyst at Danske Bank A/S.

The mexican mix closed at a price of 80.52 dollars per barrel, which meant a fall of 0.70 percent in its session on January 21.

In the United States, the performance of 10 year treasury bonds decreases by 2.3 base points and stands at 1.73 percent. In Mexico, the rate of return on 10 year M bonds remains practically unchanged, at 7.67 percent.