International Business: Global Wrapup
OPTIMISM ON MEXICO
International investors are turning optimistic about the outcome of the hotly contested Aug. 21 presidential election. Apparently anticipating an orderly balloting and a victory by the ruling Institutional Revolutionary Party, the investors are reentering the markets, helping to lift the stock-exchange index by 3% in early August. Heavy buying has furthermore brought rates on peso-denominated T-bills down from 17% to 15.8%. The money flows are beginning to ease the pressure on the peso, which had been the target of rumors suggesting that a devaluation might be forthcoming.