Mexican equities were knocked back to four-month lows Monday, with losses suffered by cement maker Cemex SAB after a ratings downgrade and pressure from Wall Street, where stocks crumbled to 12-year lows.
Mexico's IPC fell 2% to 17,956.40. It was the lowest close for the benchmark since Oct. 23, and its fifth decline in a row.
On Wall Street, investors remained on edge as the U.S. government prepared to release details this week about stress tests it plans to administer to financial institutions. The S&P 500 Index (SPX) dropped 3.5% to 743.33, and the Dow Jones Industrial Average (DJI) fell 3.4% to 7,114.78.
Among the measures, bank regulators will consider how much capital a bank has left if it were to register its losses immediately. Companies that fail tests could be forced to accept investment from or be nationalized by the government.
In Mexico City, shares of Cemex (CX) stumbled 4.9% after Fitch Ratings cut the company's credit ratings, saying the company is facing a heavy debt load while three of its key markets -- the U.S., Spain and the U.K. -- are in " unprecedented downturns." Cemex is the largest provider of ready-mix concrete and cement to the U.S.
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