Europe and Britain
The London FTSE, Paris CAC and Frankfurt DAX were down on the week as weak economic indicators combined with continued earnings disappointments to drag the indexes down. Profits and growth worries abounded as key sentiment indicators sank below the 50 percent level, meaning that the economies were sagging. Investors continue to keep their eyes across the Atlantic for economic stimulus due to the European Central Bank's reluctance to cut interest rates. The FTSE in particular responded to the turn around in U.S. markets on Friday. Investors expect the Bank of England to lower rates at their meeting this week. British inflation is very low, and the Monetary Policy Committee appears to be more sensitive to growth problems than the ECB.
Asia
Asian markets continue to respond to the vicissitudes of the high technology industries. A drop in chip prices automatically provokes a negative response, especially in South Korea, Singapore and Japan. Asian markets were closed before the U.S. employment report, so they will get their chance to respond when markets open on Monday.
Confidence in the new administration of Junichiro Koizumi has added support to the Japanese equity market since he was elected Prime Minister. Expectations are growing that Koizumi will carry out promised structural reforms to lift the nation's weak economy. Japanese markets were closed three days last week for the Golden Week holidays. Now investors are focused on the words and actions of the new government. Koizumi speaks Monday to the Japanese Parliament where he is expected to unveil his economic policy proposals.
Introduction Global Stock Market Indexes Recap of Global Markets Currencies Indicator Scoreboard
The Bottom Line Looking Ahead
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