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 -0.3% -0.3% +20.0% +19.7% Australia +1.7 +1.8 +21.6 +14.9 Brazil +2.7 -4.5 +1,624 +72.5 Canada +0.3 +0.1 +8.6 +4.2 Chile +1.9 +1.5 +14.9 +7.3 France +0.3 -0.7 +15.8 +12.5 Germany +0.3 -0.7 +23.8 +22.9 Hong Kong +1.0 +0.9 +32.6 +32.6 Indonesia -4.5 -4.8 +60.3 +57.2 Italy +1.7 +0.6 +41.7 +32.8 Japan -1.0 -2.9 +22.5 +44.3 Korea +2.8 +3.1 +7.5 +4.5 Malaysia +3.4 +3.2 +44.2 +47.8 New Zealand -1.3 -0.9 +32.1 +42.5 Singapore +0.6 +0.9 +23.8 +27.7 Spain -1.3 -2.8 +38.1 +20.6 Taiwan -2.2 -2.2 +13.5 +7.1 Thailand -2.6 -2.9 +12.4 +13.7 U.K. +0.7 -0.7 +9.2 +8.9 U.S. +1.4% +6.1%

Source: Morgan Stanley Capital International

MEXICAN STOCKS

The market continues its saw-toothed pattern, awaiting more definitive word on the North American Free Trade Agreement’s prospects in the U.S. Congress. In the meantime, new figures show foreign investment continues to pour into Mexico.

In the first eight months of 1993, foreigners invested $6.96 billion in Mexico, up 10.4% from a year ago. About 53% of the total went into stocks, the rest into direct investment. U.S. investors accounted for 72.2% of the total; British investors, 5.6%; French, 2.3%, and Dutch, 2.2%.

The Mexican Investment Board reports that the market’s average stock price-to-earnings ratio is now 13.5.

Source: D.A. Campbell

SPOTLIGHT: HUNGARY Hungary, relatively well-off compared to its Eastern European neighbors, has nonetheless experienced hard economic times in its recent transition to a market economy. The country has had negative economic growth, partly due to loss of trade with the the former Soviet Union and other nations in the region.

Sources: Bank of America; World Information Services