International Business

MEXICAN STOCKS

* Mexican stocks fell amid concern that the impasse over the U.S. budget might push interest rates up and hurt company earnings on both sides of the border.

* Shares rose early in the day after benchmark one-month interest rates fell 1.22 percentage points to 49.09% in Tuesday’s weekly Bank of Mexico auction of government debt. Also, the peso strengthened for the fifth day, soaring 1.4% to 7.535 to the dollar, its highest price in three weeks. A stronger currency makes peso-denominated securities, such as equities, more valuable. Lower borrowing costs boost company earnings and the size of dividends paid to shareholders.

* Series L shares of Telmex, worth about a quarter of the value of the Bolsa index, declined 1.45% to 12.24 pesos. The company’s New York shares fell 1.5% to $32.125.

The Bolsa Index

Wednesday closes: 2,746.49

Sources: Bloomberg Business News, Dow Jones