The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Expected strong 2Q and Amlo bounce positive for Mexico’s banks

Markets take Andrés Manuel López Obrador (Amlo) victory in stride; analysis shows Santander could outperform under next administration.

Andres-Manuel-Lopez-Obrador-thumb-R-780

Amlo’s election success was expected, but stunning

The landslide victory of Amlo in the Mexican presidential election on July 1 didn’t lead to a negative impact on the financial markets, as some had predicted.

Assets have performed well and the Mexican banks – on something of a roll – should see these benign economic conditions continue.

Amlo’s success was expected, but stunning: he became the first presidential candidate to win a majority of the popular vote (53%) and, perhaps more important for governability, his coalition (Morena) won an outright majority in both houses of congress – almost two-thirds in the lower house.

However, markets have responded positively: the currency has strengthened against the dollar, the 10-year udibono yields have compressed and equities have rallied.

Rafael-Elias-160x186

Rafael Elias,
Exotix

Analysts such as Exotix’s Rafael Elias, who had predicted a widespread sell-off on a strong Amlo performance, believe the new president-elect’s swift change in tone has been the cause of the good market sentiment.

Amlo’s often-belligerent tone in the campaign has been transformed into one of conciliation and market-friendly comments, particularly in regards to fiscal prudence and maintaining the independence of the country’s central bank Banxico.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree