Global markets start the week cautiously: BMV opens lower, Wall Street mixed, and Asia watches

Global financial markets began the week of May 5, 2025, on a cautious note, reflecting lingering uncertainty over U.S. Federal Reserve ( Fed ) monetary policy and renewed trade tensions fueled by announcements by President Donald Trump.

Mexico (BMV): The main indicator, the S&P/BMV IPC, opened the session with slight losses. Initial reports indicated a 0.2% drop to 55,701.42 points, while other sources indicated a 0.80% decline compared to the close on Thursday, May 1 (last trading day), standing at 55,811.99 points. The index remains below its yearly high (56,980 points) but above its low (48,957 points).

United States (Wall Street): Major US indices opened lower. The Dow Jones Industrial Average (US30) fell 0.53% (41,189 points), the S&P 500 (US500) fell 0.71% (5,664.5 points), and the Nasdaq Composite (US100) fell 0.91% (19,998.95 points). This contrasts with the strong bullish close on Friday, May 2, driven by employment data and hopes (later tempered) for trade talks with China.

Asia: Key markets such as Japan's Nikkei 225 and Hong Kong's Hang Seng remained closed on Monday due to a holiday. The Hang Seng had posted a 2.4% weekly gain the previous week thanks to Chinese stimulus plans, while the Nikkei closed Friday with a negative technical outlook.

Europe: European indices showed mixed performance in the early hours. The Euro Stoxx 50 maintained a technical uptrend, although with low volume due to the UK market closure (also a holiday). The German DAX traded at a significant premium to the Stoxx 600.

| Index | Country/Region | Open/Last Value | Change (%) | Key Notes |

|—|—|—|—|—|

| S&P/BMV IPC | Mexico | ~55,701 – 55,812 | -0.2/-0.8 | Negative opening |

| Dow Jones (US30) | USA | 41,189 | -0.53 | Initial decline, Fed/ISM expectations |

| S&P 500 (US500) | USA | 5,664.5 | -0.71 | Initial decline, influenced by tariffs/Buffett |

| Nasdaq (US100) | USA | 19,998.95 | -0.91 | Initial decline, tech/media sector affected

|

| Nikkei 225 | Japan | Closed | N/A | Holiday (Children's Day) |

| Hang Seng | Hong Kong | Closed | N/A | Holiday (Buddha's Birthday) |

| FTSE 100 | United Kingdom | Closed | N/A | Bank Holiday (Early May Bank Holiday) |

| Euro Stoxx 50 | Eurozone | ~5.285 (previous close) | +0.6 (previous) | Bullish trend

technique, low volume |

| DAX | Germany | N/A | N/A | High P/E Premium vs Stoxx 600 |

Note: Opening data is approximate and subject to change. N/A = Not available in snippets.

Investor caution is due to a confluence of factors:

Fed Outlook: Attention is focused on the Fed's monetary policy meeting, which concludes on Thursday, May 8. The US ISM Services Index (ISM) data, released today, will be crucial in assessing the health of the economy. Friday's employment report, while showing a slight slowdown (177,000 payrolls created), was not weak enough to raise bets on imminent interest rate cuts.

Trade Tensions: Trump's threat to impose a 100% tariff on foreign films negatively impacted media and entertainment stocks (Netflix, Warner Bros. Discovery, Disney). Although China confirmed that the US has requested to begin tariff talks, uncertainty persists, especially after the US rejected a full exemption for Japan.

Corporate News: The quarterly earnings season is coming to an end in the US. The announcement that Warren Buffett will step down as CEO of Berkshire Hathaway at the end of the year caused the company's stock to fall. Apple, meanwhile, plans to sell corporate bonds.

Oil Prices: Crude oil prices (Brent ~$60, WTI ~$57) remain under pressure following OPEC+'s announcement of a possible production increase to pressure other partners and compete with US shale.

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