International Business : Global Markets and Economic Update

L.A. Times Archives

Nov. 17, 1994 12 AM PT

MEXICAN STOCKS

* Mexican stocks rebounded 2.08% after two days of decline. Investors were optimistic about gross domestic product figures for the third quarter.

* The increase in U.S. interest rates might force Mexico’s central bank to raise local rates to attract the foreign investment necessary to fund the nation’s economic development. “The Mexican market is hurt by two negative factors: higher interest rates and the fact that the political situation is still unclear,” said Jorge Placido, a trader at Vectormex Casa de Bolsa. Investors fear the split within the ruling party--between reformers and conservatives fearful of losing their perquisites and power--will hamper pro-business polices.

Sources: Bloomberg Business News; Dow Jones

SPOTLIGHT: PARAGUAY

Incorrect data was included in the spotlight on Paraguay in the Nov. 10 edition of The Times. The following is the correct data for the country:

Sources: Bank of America; World Information Services