Global Markets and Economic Update

MEXICAN STOCKS

* Mexican stocks have rallied in the last two days after slipping Monday. The Bolsa index dropped after the presidential campaign to as low as 2,651.5 points. Meanwhile, yields on the benchmark 28-day treasury bill fell for the first time in a month and the peso stopped its slide against the U.S. dollar. Traders now expect a quick renewal of the anti-inflation pact between government, business and labor. Details of the pact, which outlines wage raise limits and price controls, will give investors insight into the direction of the next president.

* Mexican bottler Embotelladores del Valle de Anahuac has dropped plans to sell $50 million in shares and will sell debt instead.

Sources: Bloomberg Business News; Dow Jones

SPOTLIGHT: PAPUA NEW GUINEA

Little known to the world before World War II, this former Australian colony is now one of the world’s fastest-growing economies because of the development of its resources. The island nation is seeking to use its mineral wealth--a mother lode of gold, copper and petroleum--as a means of integration with Asian economies.

Sources: Bank of America; World Information Services