International Business
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MEXICAN STOCKS
* Mexican stocks closed down 4.6% Wednesday, hit by profit taking by both local and foreign investors after Tuesday’s euphoric advance. President Ernesto Zedillo said a new international financial aid package will help the country swap its short-term debt for longer-term securities.
* Traders said news of increases in U.S. interest rates accentuated the profit taking.
* The peso strengthened for the second day against the U.S. dollar as concern eased over Mexico’s ability to pay back its short-term debts, traders said. The currency closed at 5.375 pesos to the dollar, a 7% increase from Tuesday’s close of 5.75. The currency posted a 10% gain on Tuesday.
The Bolsa Index
Wednesday closes: 1,997.79
Sources: Dow Jones; Bloomberg Business News
SPOTLIGHT: HUNGARY
A four-year plan implemented in 1991 to integrate Hungary into the world economy has helped the nation lead the way toward free markets in Eastern Europe. Inflation and unemployment have eased, and the government has sold more than 30% of state-owned industries to private parties.
Sources: Bank of America, World Information Services
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