Global Markets and Economic Update
* The market shows no sign of stabilizing, as profit-takers continue to dominate and buyers stay sidelined. The Bolsa index added to its 1994 decline on Tuesday with a loss of 71.29 points, or 2.8%, to 2,514.15. That is the lowest close since it hit 2,506.33 on Jan. 17, during the plunge sparked by the rebel uprising in Chiapas state.
* With many other world stock markets sliding and with U.S. interest rates on the rise, Mexican stocks are suffering in kind, analysts say. In addition, lingering fears that the economy’s 1993 slowdown may persist in the first half of this year has removed any feeling of urgency on the part of would-be buyers.
Source: D.A. Campbell, Times research
A program of austerity and privitization continues since the economy entered the European Union in 1986, with the objective of covergence with other European countries. The current recession on the continent has slowed growth although the common market has increased the market for goods.
Sources: Bank of America; World Information Services