Mexican Markets Resilient

Mexican markets showed resilience Monday, despite three small bomb explosions in the capital in the early hours of Monday morning. The benchmark IPC index closed the day up 2.43%, driven by Wall Street and the rising stock of América Móvil. The peso, however, fell back 0.41% against the dollar and the yield on Mexico’s benchmark 8% 2015 peso bond rose to 7.934%, from 7.922% Friday, following the attacks aimed at political and financial targets in the city. Three small bombs exploded almost simultaneously at the federal electoral court, the headquarters of the PRI and at a branch of Canadian Scotiabank. No one was injured. A fourth, unexploded device, was reportedly also found. The political climate in Mexico has been tense since elections took place on July 2. Losing candidate, Andrés Manuel Lopez Obrador (AMLO), has refused to acknowledge the victory by president-elect Felipe Calderón. Meanwhile, in the city of Oaxaca, a five-month protest by activists and demonstrators, calling for the resignation of the state governor, led to federal troops being deployed last week leaving 15 dead.