here we go
the estrogen factor in food
this
anon does
Ken Paxton should be that doctor's attorney in federal court
soon
Mexican peso, stocks tumble on fears of ruling coalition super-majority in Congress
LONDON/NEW YORK, June 3 (Reuters) - Mexican stocks fell over 6% on Monday and the peso closed at its weakest to the dollar since November after the country's ruling party scored a surprisingly strong election result and looked poised for a super-majority in Congress that markets fear might bring constitutional change and diminish checks and balances.
Claudia Sheinbaum won a landslide victory in Sunday's presidential election, as had been widely expected. But the scale of the gains for the Morena party and its allies took markets by surprise, with some fearing the results would pave the way for the ruling coalition to pass constitutional reforms without opposition support.
A two-thirds super-majority in both chambers of Congress is still in the cards for Morena, which also won the mayoral race in Mexico City by a double-digit margin.
The Mexican peso earlier hit a fresh seven-week low of 17.754 to the dollar, a 4.29% drop, LSEG data showed. It ended the session down 3.8% at 17.671 per dollar, its weakest daily close since November.
"The question is whether the Morena party has done so well that it could command a super-majority and try to pursue market non-friendly policies of constitutional reform," said Chris Turner, global head of markets at ING.
The latest losses mean the peso has weakened more than 4% since the start of 2024, a sharp turnaround for the currency, which was, until recently, one of the few in emerging markets to have gained ground against a strong dollar this year.
Mexico's benchmark stock market index (.MXX)
, opens new tab ended the session down 6.1%, while the MSCI index (.MIMX00000PUS), opens new tab, priced in dollars, dropped 8.8%. The iShares MSCI Mexico ETF closed 10.7% lower. (EWW.P)
, opens new tab
"The main challenge for president-elect Claudia Sheinbaum will be to bolster market sentiment and provide a predictable and investment-friendly policy and regulatory framework," Alberto Ramos, head of Latin America economics research at Goldman Sachs, said in a client note.
"Ultimately, the new administration will be challenged not to encroach on private sector activity and free markets, and to avoid further erosion of institutional quality."
https://www.reuters.com/markets/currencies/mexico-peso-drops-nearly-3-sheinbaum-landslide-raises-reform-worry-2024-06-03/