Global Markets and Economic Update : International Business

MEXICAN STOCKS

* The market ran into its first heavy profit taking since mid-May on Wednesday, as the Bolsa index dropped 44.75 points to 2,438.98. Analysts said the market was nervous as the Bolsa approached the 2,500 level, which is expected to be difficult to surmount as uncertainty about the August presidential election remains.

* At the government’s weekly treasury bill auction Wednesday, yields on 28-day bills fell for the first time in four weeks, to 16.24% from 16.48% a week ago. Some U.S. money managers believe Mexican interest rates are unlikely to fall much further until the election is over.

Source: D.A. Campbell, Times research

SPOTLIGHT: SOUTH KOREA

South Korea’s economy is expanding rapidly again after two years of modest growth, in large part because of the recent surge in the value of the Japanese yen, which makes Korean exports cheaper relative to comparable Japanese products. Growth has also been aided by increased demand for Korean products.

Sources: Bank of America; World Information Services