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 -4.6% -4.7% +30.9% +30.5% Australia -3.8 -4.4 +28.0 +24.4 Brazil +4.4 -1.8 +2,490.6 +68.8 Britain -3.0 -2.8 +10.7 +8.3 Canada -1.0 +0.7 +15.9 +13.7 Chile -2.1 -2.0 +17.9 +9.5 France -3.8 -2.7 +16.2 +9.5 Germany -2.0 -1.5 +31.3 +26.2 Hong Kong -4.9 -4.9 +65.0 +65.3 Indonesia +6.5 +6.8 +77.9 +75.4 Italy -5.3 -4.7 +31.0 +18.0 Japan -1.7 -1.2 +22.4 +41.4 Korea +2.9 +2.9 +16.0 +13.0 Malaysia -4.7 -4.5 +61.5 +65.3 New Zealand -8.1 -10.2 +38.9 +46.6 Singapore -3.9 -4.1 +28.1 +31.9 Spain -3.2 -3.1 +46.1 +24.0 Taiwan +3.0 +2.9 +24.4 +17.5 Thailand -1.6 -1.5 +53.2 +54.3 U.S. -1.7% +5.3%

Source: Morgan Stanley Capital International

MEXICAN STOCKS

The Mexican market continues to be a hostage to NAFTA worries, but has been surprisingly immune to the sudden turmoil in the peso and money markets. The Bolsa index rebounded 25.92 points to 1,953.84 on Tuesday, despite a sharp drop in the peso’s value and a jump in yields on short-term government bills.

Equity investors have been assured repeatedly by President Carlos Salinas de Gortari that Mexico’s commitment to free trade and to lower inflation won’t change, regardless of what happens with NAFTA. Still, analysts concede that the stock market is vulnerable to a significant decline if NAFTA fails in Congress on Nov. 17.

Source: D.A. Campbell

SPOTLIGHT: ISRAEL

A surge in immigration powered much of Israel’s recent economic growth. But immigration has also exacerbated the budget deficit and increased unemployment--currently about 11% overall and 40% for new immigrants. Government stimulus measures have been introduced to create housing and jobs for immigrants.

Note: Years ’93 through ’98 are projected

Sources: Bank of America; World Information Services