Mexican stocks end a banner year, even outperforming Wall Street

Despite ongoing struggles successful the Mexican economy, Mexico’s stocks are outperforming Wall Street, arsenic the country’s fiscal assets implicit 1 of the strongest years successful decades, including the peso’s champion showing successful 32 years.

The iShares Mexico ETF — an exchange-traded money utilized to way the show of investments successful a scope of Mexican equities — has risen by implicit 50% this year, marking the fund’s highest emergence since 1999. The banal importantly outpaced respective large U.S. benchmarks, specified arsenic the Vanguard S&P 500 ETF, which gained astir 17%, and Invesco QQQ Trust, which roseate by astir 21% implicit the aforesaid period.

Along with the rising banal market, the Mexican peso besides had a grounds year, its champion since 1993, with 2025 apt to extremity with the dollar beneath 18 pesos. (@tcf_updates/X)

Global investors person been stunned by the outstanding show of respective Mexican stocks successful 2025, peculiarly aft the antagonistic predictions that followed the instauration of U.S. tariffs connected a wide array of Mexican products earlier successful the year. 

In the look of those tariffs, the Mexican peso has amazingly appreciated by implicit 14% against the U.S. dollar, which has enactment it connected way to execute its champion yearly show since 1993, erstwhile the modern peso was archetypal introduced arsenic the “new peso.” 

The Bank of Mexico (Banxico) has importantly reduced involvement rates since the opening of the year, by 300 basis points, arsenic the argumentation complaint fell to 7%. 

The cuts person helped boost capitalist assurance successful Mexican assets by reducing trade-related uncertainty, portion much-needed currency has been injected into the economy. 

Several idiosyncratic stocks person seen beardown returns successful 2025. For example, mining and materials companies person benefited from higher commodity prices. 

Industrias Peñoles accrued by implicit 260%, and Gentera roseate by much than 100%. 

Meanwhile, Cemex and Grupo México each experienced an summation of implicit 80%. 

Mexican stocks’ beardown showing carried a reminder of the spread that often exists betwixt the markets and the on-the-ground economy. Mexico’s GDP contracted by 0.2% successful the 3rd 4th of this twelvemonth aft experiencing level maturation successful the 2nd quarter.

The contraction led Banxico to trim its maturation outlook to 0.3%. Meanwhile, the cardinal slope expects Mexico’s system to rebound gradually to 1.1% successful 2026 and 2% successful 2027. 

Declining remittances, constricted ceremonial occupation creation, slowing recognition maturation and anemic user assurance proceed to hamper the country’s economical growth, contempt enactment from authorities transfers and little involvement rates.

The hosting of the FIFA World Cup and the anticipated reappraisal and finalization of the USMCA North American escaped commercialized statement could assistance trim commercialized uncertainty successful 2026, Bank of America economist Carlos Capistran was reported arsenic saying by the Benzinga quality site. 

However, “If weakness persists, the cardinal slope whitethorn proceed cutting rates to stimulate demand,” Capistran said. 

With reports from Yahoo Finance and Eje Central