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 +3.2% +3.2% +36.6% +36.4% Australia +2.3 +3.8 +27.3 +23.8 Brazil +5.5 -1.3 +3,426 +73.4 Britain +2.9 +4.2 +16.7 +15.6 Canada +1.2 +1.6 +17.3 +12.2 Chile -0.1 -1.8 +26.7 +14.3 France +2.9 +3.9 +21.6 +14.7 Germany +4.3 +4.9 +38.0 +31.1 Hong Kong +6.1 +6.2 +72.7 +73.1 Indonesia -1.1 -1.1 +79.3 +76.2 Italy +4.5 +4.8 +36.2 +19.0 Japan +5.1 +6.4 +9.5 +26.4 Korea +4.3 +4.1 +23.5 +20.1 Malaysia +6.9 +7.2 +75.7 +80.0 New Zealand +2.4 +3.2 +42.0 +51.8 Singapore +4.3 +4.4 +37.8 +41.2 Spain +2.9 +2.5 +48.6 +21.0 Taiwan +10.3 +10.4 +46.1 +38.0 Thailand +6.9 +6.9 +62.4 +62.8 U.S. +0.8% +6.9%

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Source: Morgan Stanley Capital International

MEXICAN STOCKS

The Bolsa Index

Tuesday closes: 2,384.08

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-- Sellers attempted to start a rout in the market Tuesday, but buyers quickly swarmed. The Bolsa index, off about 25 points at midday, surged later to close at 2,384.08, off just 2.06 points from Monday’s record. Analysts note that even though the market is up 36% year-to-date, it is among the world’s cheapest markets in stock price-to-earnings ratios.

-- Many institutional investors in the United States are likely to boost their holdings of Mexican stocks in 1994, thanks to the confidence engendered by the North American Free Trade Agreement, analysts say. That could provide a floor under the market near current levels.

Source: D.A. Campbell

SPOTLIGHT: GERMANY

Germany remains in recession partly because of high interest rates resulting from government borrowing to finance unification with the former East Germany. Reduced rates are expected to boost growth somewhat next year, but the unemployment rate is expected to remain at about 8%.

Sources: Bank of America; World Information Services