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MEXICO CITY, July 15 (Reuters) - Mexico's peso surged on
Wednesday and stocks jumped as signs of improving U.S. factory
output and a solid earnings report from bellwether Intel
boosted confidence in U.S. economic recovery.
The peso <MXN=><MEX01> gained 1.4 percent to 13.545 per
dollar, snapping a six-session losing streak in its biggest
jump in a month.
The IPC stock index <.MXX> closed up 4.09 percent to
25,336.33 points, its highest since June 12 and its biggest
one-day jump since May 4.
U.S. industrial output declined at a slower pace in June
and a key regional U.S. factory survey posted its strongest
reading in a year this month, suggesting the recession was
loosening its grip. "It may not be the quality of a rebound we need yet, but it
is getting there," said Carlos Gonzalez, an analyst at Ixe
brokerage in Mexico City.
The U.S. downturn has driven Mexico into a deep recession
and hopes for a local recovery depend on a rebound in demand in
the United States, the destination for around 80 percent of
Mexican exports.
Further underpinning investor optimism, Intel Corp <INTC.O>
posted solid quarterly results and beat expectations for its
revenue outlook.
"We are seeing that companies are not as bad off as we
thought and we can expect the second half of the year to be
better," Gonzalez said.
Mexican media giant Televisa, which posts earnings on
Thursday, and America Movil, the top wireless operator in Latin
America, are expected to post heartening results this week and
next.
Shares in Wal-Mart de Mexico <WALMEXV.MX> climbed 4.28
percent to 40.72 pesos and America Movil <AMXL.MX> added 1.96
percent to 27.07 pesos.
Televisa <TLVACPO.MX> gained 3.48 percent to 49.12 pesos.
Televisa is seen reporting a 6.36 percent rise in net
profit to 1.958 billion pesos ($149 million) and posting a 9.4
percent increase in revenue to 12.585 billion pesos ($956
million), according to a Reuters survey.
In debt trading, the yield on the government's benchmark
10-year peso bond <MX10YT=RR> rose 2 basis points to 8.14
percent.
Mexico's central bank will likely lower its key interest
rate by a quarter percentage point to 4.50 percent on Friday,
but could also signal it is done loosening monetary policy,
according to a Reuters poll. [nN15221393]
($1 = 13.17 at the end of 2009)
(Reporting by Michael O'Boyle; Editing by Diane Craft)
Keywords: MARKETS MEXICO
