Britain and Europe
Investors continue to be influenced by Wall Street's behavior. While stocks may rise in morning trading prior to Wall Street's opening, they follow U.S. shares in the afternoon. On Friday, for example, shares were up smartly in the morning and at the initial opening on Wall Street. However, after the release of the University of Michigan consumer confidence survey, U.S. markets moved lower. London, Paris and Frankfurt were quick to follow. Despite this, the three indexes tracked here - the London FTSE 100, Paris CAC and Frankfurt DAX - ended the week in positive territory, thanks to a recovery in the TMTs - technology, media and telecommunications.

Asia
For the most part Asian indexes tracked here rose on the week. The Hong Kong Hang Seng continues to celebrate the Federal Reserves 50 basis interest rate cut and the prospects of future cuts to come. U.S. monetary policy shifts have a direct impact on Hong Kong as the territory's currency is pegged at a fixed rate against the dollar. Interest rate sensitive sectors such as banks and property companies led the rally and were quickly followed by telecommunications shares. The Hang Seng had previously been driven down by rising U.S. interest rates and the sagging technology sector.

Tokyo's Nikkei-225 recovered some of its recent losses when talk of government support for the market raised investors' confidence. After shares sank near a 15 year low, the ruling Liberal Democrats assembled its stock boosting panel to consider several market support options. The markets have been rising since. One widely supported proposal would let companies buy back and hold their shares, something common in the United States but not allowed in Japan. Another idea is to let banks give the government their common stock as repayment for an emergency injection of state capital into the banking system, which enfeebled lenders received in 1999. They are also weighing the idea of pushing the Bank of Japan to further ease credit - something the politicians have been trying and failing to do for years. But analysts warn that shares could plummet again if the government doesn't address the long term woes that are pulling down the market and the broader economy.

Introduction   •   Global Stock Market Indexes   •   Recap of Global Markets   •   Currencies   •  Indicator Scoreboard

The Bottom Line   •   Looking Ahead