Global Markets and Economic Update

MEXICAN STOCKS

* The market rallied briskly Wednesday, helped by strength on Wall Street and by a fresh recommendation from brokerage Smith Barney Shearson. The Bolsa index jumped 86.59 points to 2,375.18.

* Smith Barney changed its rating on the market to “neutral” from “sell” and recommended stocks such as Telmex, Cifra and Grupo Carso. The firm predicted that Mexican interest rates are close to peaking. But at the weekly auction of treasury bills, or cetes, the yield on the 28-day bill rose to 16.41% from 16.02% last week. Traders said the government restricted the amount of cetes sold in an effort to keep rates artificially low.

Source: Times wire services

SPOTLIGHT: SAUDI ARABIA

Saudi Arabia, whose export income is almost entirely dependent on the volatile oil market, is trying to cut state spending and stimulate private investment to steady its economy through a period of low oil prices. The government may also study selling some of its commercial state assets.

Sources: Bank of America; World Information Services