German bonds experienced a decline after lawmakers approved a historic spending package. Additionally, geopolitical tensions increased due to conflicts in Gaza and the lack of a peace agreement in Ukraine. Analysts from Bx+ highlighted these factors as elements impacting the market.
Attention will turn this week to the two-day meeting of the Federal Reserve (Fed), which begins on Tuesday. An announcement from the Fed regarding interest rates is expected, which is predicted to remain stable with a high probability, according to CME's FedWatch tool.
In the Mexican Stock Exchange, the S&P/BMV IPC registered an advance of 0.59%, standing at 52,791.64 points. Meanwhile, the FTSE-BIVA index saw an increase of 0.64%, reaching 1,068.73 points. In Europe, stock indices are operating in positive territory, with gains in Spain's IBEX 35, Germany's DAX, France's CAC 40, and London's FTSE 100.
In the oil market, both West Texas Intermediate (WTI) and Brent experienced positive variations. WTI reached $67.70 per barrel, while Brent hit $71.28 per barrel.
On Wall Street, major indices started the session with declines, influenced by increased risk aversion after Israel's attacks in Gaza. The Nasdaq fell 2.04%, the S&P 500 dropped 1.25%, and the Dow Jones decreased 0.66%. The tech group known as "The Magnificent Seven" reached its lowest since September, with companies like Tesla and Nvidia recording losses ahead of their CEO's speech.
Amid tensions in the Middle East, gold reached a historic high, and the 'Magnificent Seven' index registered a decline of 3.1%. The Russell 2000 also fell 1.1%. A higher-risk aversion environment is expected due to less favorable outlooks for the global economy and signs of cooling in U.S. activity.
