Mexico’s IPC Slides 2.4% as Tariff Fears and Growth Concerns Mount

According to official exchange data, the S&P/BMV IPC closed at 55,631.87 on April 29, down 2.4% from yesterday. Traders sold broadly amid month-end rebalancing and fresh uncertainty over U.S. tariff policy. Volume surged as declines vastly outnumbered gains.

The peso weakened 0.11% to 19.63 per dollar, while the euro gained 0.10% to 22.22 pesos. Oil prices fell nearly 2%, pressuring energy and mining stocks. Those moves compounded local market stresses and weighed on commodity-linked shares.

A central bank survey showed zero growth in Mexico’s first quarter, sparking recession worries. Investors fretted over stalling expansion ahead of May employment and manufacturing data. Market participants shifted into defensive names as growth expectations dimmed.

América Móvil reported a 39% jump in first-quarter net profit, driven by lower financing costs. The telecom giant generated 232 billion pesos in revenue, narrowly missing consensus. Becle posted 15% higher profit after a weaker peso boosted earnings.

Airline, materials and mining sectors led losses as commodity prices retreated. Retail and consumer-finance shares outperformed, reflecting steady domestic demand. Traders noted that cyclical names bore the brunt of risk-off flows and policy jitters.

U.S. stocks bucked the trend as major indexes rose on solid corporate results. European bourses extended gains on easing trade-talk tensions. That divergence underlined how local factors drove Mexico’s underperformance.

Latin American ETFs See $305M Inflows

Latin American equity ETFs attracted $305 million last week, led by Brazil-focused funds with $145.6 million in net inflows. The iShares MSCI Mexico ETF fell 2.69%, trading nearly seven million shares on heavy flows.

Volara plunged 9.75% after warning on full-year profit, citing delayed air-traffic recovery. Grupo Carso slid 8.45% as investors rotated out of conglomerate holdings. Peñoles dropped 7.48% amid lower metal prices, while América Móvil and Elektra edged higher on reported strengths.

Technically, the IPC broke below its 20-day moving average after retracing from the 57,700 resistance zone. Analysts identified support at 55,600 near the 50-day SMA and lower Bollinger band. They advised watching U.S. trade announcements and domestic GDP figures for fresh direction.

Traders will gauge new economic indicators and policy statements for signs of stabilizing growth. If Mexico avoids a technical recession and tariff rhetoric cools, investors could push the index back toward 57,000. A sustained break below 55,500, however, may test 54,500 next.