| | |  Business News | December 2008 
Mexican Peso, Stocks Soar on Obama Plan, Auto Hopes
 Jason Lange & Michael O'Boyle - Reuters
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Mexico City - Mexico's peso rallied on Monday and stocks surged 4 percent on hopes that U.S. President-elect Barack Obama's infrastructure investment plan would boost the slumping U.S. economy.
Investor sentiment also was lifted by signs that Washington would approve financial aid for U.S. automakers.
Both factors are good news for Mexico's slowing economy, which sends about 80 percent of its exports to the United States and is a major auto producer.
"It's helping to lift spirits," said Nick Chamie, head of emerging markets research at RBC in Toronto.
The peso MEX01, which has lost around 19 percent of its value against the dollar so far this year on worries about the trouble in the U.S. economy and financial markets, gained 1.74 percent on Monday to 13.48 per dollar.
The IPC stock index .MXX surged 4.01 percent to 20,887 points, led by a 5.74 percent jump in Latin America's biggest cell phone operator, America Movil (AMXL.MX)(AMX.N), to 20.08 pesos.
Cemex (CMXCPO.MX)(CX.N), the top U.S. cement supplier, climbed 12.84 percent to 11.25 pesos.
In debt trading, the yield on the government's benchmark 10-year peso bond fell 14 basis points to 8.47 percent, its lowest since early October.
(Editing by Walker Simon) |
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