Now that the G-7 distraction is behind them, traders can get back to business. The final communiqué acknowledged the current slowdown in the United States, and to a lesser extent, in Europe. But finance officials said that despite the slowing over the past year, the foundations for economic expansion were sound. In the press briefing following the meeting, three influential European finance officials defended the independent stance of the ECB. The G-7 statement also said that there were clear signs of a slowdown in Asia, but offered a wait and see attitude on Japan, giving the new government a chance to get its act together. As to foreign exchange rates, they reiterated their view that exchange rates should reflect economic fundamentals. If the foreign exchange markets were looking for specific guidance, they are bound to be disappointed.

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

The Bottom Line   •   Looking Ahead