Global Markets and Economic Update

FOREIGN STOCK MARKETS

Stock index trends in native currencies and in dollars adjusted for currency fluctuations. The dollar-adjusted returns are what U.S. investors would realize.

Last Week Year to Date Market Native In dollars Native In dollars Argentina -1.1% -1.1% +20.4% +20.0% Australia -0.8 -0.9 +19.5 +12.9 Brazil +8.7 +1.1 +1,579 +80.7 Canada -0.9 -1.2 +8.3 +4.2 Chile +0.8 +0.8 +12.7 +5.8 France -0.6 -1.5 +15.4 +13.2 Germany +1.7 +1.0 +23.5 +23.8 Hong Kong -1.1 -1.1 +31.3 +31.5 Indonesia +0.4 +0.3 +67.9 +65.1 Italy -1.9 -3.9 +39.3 +31.9 Japan -3.4 -1.0 +23.8 +48.6 Korea -0.5 -0.7 +4.5 +1.4 Malaysia -0.3 -0.4 +39.5 +43.3 New Zealand -1.1 -0.7 +33.8 +43.9 Singapore 0.0 +0.2 +23.1 +26.6 Spain +1.7 +0.3 +39.9 +24.1 Taiwan +2.1 +2.2 +16.1 +9.5 Thailand +1.0 +1.0 +15.4 +17.1 U.K. -0.6 -2.0 +8.4 +9.7 U.S. -1.5% +4.6%

Source: Morgan Stanley Capital International

MEXICAN STOCKS

The Bolsa index suffered another blow Tuesday as U.S. House Majority Leader Richard Gephardt said he will vote against the North American Free Trade Agreement. While not unexpected, Gephardt’s announcement added to the growing fears that the trade pact won’t make it through Congress. The Bolsa lost 25.91 points to 1,775.22 on Tuesday; it’s now down 9% from its 1993 peak.

Ironically, Mexico’s trade situation continues to improve even without NAFTA: July imports rose just 0.7% compared to a year earlier, to $5.52 billion, while exports leaped 7.5% to $4.15 billion. Non-oil exports were up 12.7%.

Source: D.A. Campbell

SPOTLIGHT: NIGERIA

To get Nigeria’s stalled economy back on track, the government needs major debt relief from Western creditors. But since former military President Ibrahim Babangida voided a June election and installed an interim regime, such a pact is unlikely until a credible civilian government is in place.

Sources: Bank of America; World Information Services