International Business : Global Markets and Economic Update

MEXICAN STOCKS

* Mexican stocks plunged after the deputy attorney general resigned and accused senior ruling party officials of covering up the investigation into the murder of Jose Francisco Ruiz Masseiu, the party’s secretary general. The Bolsa stock market index fell as much as 75 points to 2,376.23 after the official said the top two party leaders had hindered his investigation. * The prospect that party officials obstructed the inquiry has again put fractious politics in the spotlight, undermining investor confidence.

* Share prices later recouped some of the losses and closed at 2,416.67. Source: Bloomberg Business News

SPOTLIGHT: MOROCCO

Economic reforms encouraged by international lenders have reduced budget deficits and led to increased foreign investment. But the economy still suffers from a high rate of population growth, high unemployment, the vulnerability of agriculture to droughts and an over-reliance on exports of phosphates.

Sources: Bank of America; World Information Services