INTERNATIONAL BUSINESS : Global Markets and Economic Update

FOREIGN STOCK MARKETS

Stock index trends in native currencies and in dollars adjusted for currency fluctuations. The dollar-adjusted returns are what U.S. investors would realize.

Last week Year to Date Market Native In dollars Native In dollars Argentina +1.6% +1.7% +31.3% +31.1% Australia +3.3 +5.6 +26.9 +21.7 Brazil +21.6 +12.6 +2,090 +88.1 Britain +1.1 +2.2 +11.6 +12.8 Canada +2.0 +2.6 +11.1 +6.1 Chile +3.5 +3.0 +20.1 +11.0 France +0.7 +1.4 +17.7 +15.5 Germany +5.3 +6.6 +30.5 +31.8 Hong Kong +5.6 +5.8 +45.4 +45.7 Indonesia -0.7 -0.7 +59.1 +56.3 Italy -1.4 -1.0 +38.6 +29.3 Japan +1.4 +0.7 +25.7 +47.5 Korea +0.3 +0.5 +7.3 +4.0 Malaysia +6.5 +6.7 +56.1 +60.6 New Zealand +4.2 +4.7 +39.1 +49.5 Singapore +0.6 +1.5 +27.8 +33.7 Spain +3.7 +4.1 +44.1 +26.7 Taiwan +2.2 -3.4 +15.0 +8.8 Thailand +14.1 +14.5 +32.7 +34.6 U.S. -0.1% +5.6%

Source: Morgan Stanley Capital International

MEXICAN STOCKS

The market was closed Tuesday for a holiday, but Monday’s 40.14-point, 2.3% rise in the Bolsa index left it at 1,905.62, highest since mid-September. Soft drink firms have led the latest surge, on rumors that the industry will be freed from price controls. Bottlers gaining in recent days included GGemex, the Pepsi bottler in Mexico City; Coca-Cola Femsa, and Emvasa.

The news on inflation last week was mixed: The central bank said inflation was 0.7% in September, the highest since 0.8% in February. Still, the year-to-date rise is 6.29%, and full-year 1993 inflation is on track to be between 8% and 9%, within economists’ expectations.

Source: D.A. Campbell

SPOTLIGHT: SPAIN

After a spurt of growth in the late 1980s, Spain slipped into recession in mid-1992 when a general slowdown in Europe hurt demand for Spanish exports and the government slowed spending to contain a budget deficit. Unemployment reached about 21% this year and is likely to climb higher next year.

Note: Years ’93 through ’98 are projected Sources: Bank of America; World Information Services