Equities and the MXN reacted very positively to the election outcome, on the back of support for INE (electoral council) in certifying the midterm elections and Mexican President Andres Manuel Lopez Obrador accepting (not disputing) the outcome.
While Obrador's party Morena lost ground in Congress, it gained at the gubernatorial level, and the coalition (opposition) also strengthened. New Congress takes office on Sept 1, so there is still time for the government to push for extraordinary sessions/push for legislation more easily.
This could include the proposed changes to autonomous agencies (INE, regulatory agencies, anti-trust, etc.). AMLO's speech did not suggest this, and he and his party still control the legislative agenda but will now be forced to negotiate to get legislation passed.
Separately, US Vice President Kamala Harris in Guatemala and Mexico to discuss migration, but is not expected to make any comments on security or trade.
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