A roundup of Friday’s results across the region’s stock markets
🗽 On Wall Street:
U.S. stock markets are moving in tandem with events in Ukraine and added their second consecutive week of losses, amid statements by U.S. President Joe Biden’s administration that a Russian invasion could be “imminent”. Moscow has reiterated that it has no intention of invading Ukraine.
However, U.S. officials said Russia has amassed up to 190,000 troops in and around Ukraine, calling it the largest military mobilization since World War II.
Despite this, the diplomatic door remains open, and Russian Foreign Minister Sergei Lavrov agreed to meet with U.S. Secretary of State Antony Blinken in Europe next week.
The S&P 500 fell 0.72%, while the Dow Jones Industrials lost 0.68%. The Nasdaq Composite (CCMPDL) followed suit, slipping 1.23% to end the day.
The movement in the stock markets was also affected by the expiration of options equivalent to $2.2 trillion.
🔑 Key Data of the Day:
Oil ended with its first weekly loss in two months, amid the volatility that prices have adopted due to the crisis in Ukraine and a possible nuclear deal with Iran, which could increase the supply of crude oil onto the markets.
A possible understanding would open up the possibility of the U.S. removing sanctions on the nation’s crude exports, adding supply at a time when demand has outstripped oil supply amid reviving economies.
“The risk of a Russian invasion remains high, so there is a good chance oil prices could rise once again if troops cross the border, but the combination of next week’s Blinken-Lavrov meeting and a nuclear deal are providing relief to crude markets,” said Craig Erlam, an analyst at Oanda.
Volatility also dragged down cryptocurrencies and Bitcoin fell below the $41,000 barrier. Other digital curencies such as Ether (XET) had recorded a 4% drop at 15:38 New York time.
“Bitcoin (XBT) closed the day below a key uptrend (...) all eyes are on the situation between Russia and Ukraine for any short-term relief in the market,” said Marcus Sotiriou, an analyst at Global Block.
📉 A Bad Day:
In line with the U.S. trend, all the main Latin American indices closed with declines. The S&P BMV/IPC, the main index of the Mexican stock market, saw the sharpest losses.
The worst performing sectors were real estate, communication services and finance. Stocks such as Grupo Televisa (TLEVICPO), Inmobiliaria Vesta (VESTA*) and Grupo Financiero Banorte (GFNORTEO) were among the worst performers in the session.
Geopolitical tensions continue to dampen market performance following news that Russia will continue with military drills.
“Additionally, the markets will continue to assimilate the statements made by some members of the Fed,” said analysts from Ve por Más in a report.
Brazil’s Ibovespa (IBOV), the leading index of the largest stock market by market capitalization in Latin America, closed with a 0.57% drop.
🍝 For the Dinner Table Debate:
Friday ended with good news for guacamole and Hass avocado lovers in the United States, after U.S. authorities resumed the fruit’s inspection and import program from Mexico, its main supplier.
Purchases were halted after a U.S. Department of Agriculture supervisor in Mexico and his family received threats after an employee refused to certify a shipment of avocados.
The suspension was already creating shortages in the United States, which in 2021 imported $3 billion of avocados globally, with $2.8 billion worth of those coming from Mexico (92%). In terms of volume, the U.S. imported 1.2 million metric tons of avocados, of which 1.1 million came from the neighboring country (89%).
In 2020 and 2021, approximately 80% of avocados exported from Michoacán, a state in western Mexico, went to U.S. markets. The peak avocado growing season in Mexico is from January to March, while the U.S. avocado production season runs from April to September.
