Global Markets and Economic Update : FOREIGN STOCK MARKETS

Stock index trends in native currencies and 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 -0.2% -0.2% +40.2% +39.7% Australia -2.3 -1.0 +27.4 +23.8 Brazil -7.5 -14.3 +1871.6 +47.5 Britain +1.6 +0.9 +14.4 +12.4 Canada -0.9 +0.5 +14.5 +11.0 Chile +0.5 +0.4 +21.3 +12.2 France +3.7 +2.5 +22.4 +15.9 Germany +1.3 -1.2 +33.8 +29.9 Hong Kong -3.2 -3.3 +56.3 +56.6 Indonesia +1.8 +1.6 +67.5 +64.4 Italy -0.2 -1.3 +40.4 +29.2 Japan +2.1 +1.4 +27.9 +47.3 Korea -0.3 -0.3 +10.3 +7.2 Malaysia +3.9 +3.7 +63.3 +67.6 New Zealand +0.1 +0.9 +44.7 +56.5 Singapore -1.5 -1.4 +32.4 +38.3 Spain +2.8 +0.6 +51.3 +29.8 Taiwan -0.4 -0.4 +20.3 +13.8 Thailand -0.8 -1.2 +33.2 +34.2 U.S. -0.9% +6.2%

Source: Morgan Stanley Capital International

MEXICAN STOCKS * The Bolsa index soared 24.42 points to a record 2,029.06 on Tuesday, bolstered by phone monopoly Telmex, which is expected to report strong quarterly earnings this week. In U.S. trading, Telmex jumped $1.125 to $55.75. Prudential Securities and Salomon Bros. have touted the stock recently as a good way to play expected approval of the North American Free Trade Agreement.

* So far, Mexican and foreign investors alike refuse to acknowledge growing congressional opposition to NAFTA. On Tuesday, House Whip David E. Bonior (D-Mich.) contended that NAFTA opponents are within 10 “solid votes” of the 218 needed to defeat the trade pact in the House.

* Source: D.A. Campbell

SPOTLIGHT: CHILE Chile’s healthy economy over the past decade has been credited by some with helping smooth the way for the transformation from military dictatorship to elected civilian government. Economic growth is expected to slow this year, reflecting an inflation-fighting policy of tight money.

Sources: Bank of America; World Information Services

* Note: Years ’93 through ’98 are projected