Europe and Britain
Earnings gloom pushed equities down for most of the week as poor earnings reports spread to domestic companies. Weak economic data was pushed to the back burner as prominent telecommunications and technology companies shocked investors with their dismal warnings. Apparently investors here thought things were different than in the United States and didn't learn from U.S. earnings woes. The anemic earnings only prove that the whole technology sector is under a thick cloud and no one seems to know when we are going to see an end to weak profits.

European and British indexes closed out the week firmly in the red following profits warnings in bell weather technology and telecommunications sectors and bleak trading outlooks among financial stocks. London's FTSE 100 closed at its lowest level in 13 weeks on Friday as plummeting Wall Street equities kept the pressure on even though there appeared to be a slowdown in the technology sell off. The CAC was down with technology stocks still floundering and bank stocks adding to the downward pressure. Financial stocks were lower on concerns that a slowdown in investment banking would leave the banks' revenues below their medium term targets. The DAX was down also as financial stocks were weighed by their exposure to technology stocks and the continuing financial crisis in Turkey.

Asia
All Asian and Pacific markets sank last week as repercussions from the weak Tankan survey combined with proliferating earnings warnings to pummel equities. In Japan, bank and other lenders stocks declined after the Bank of Japan's Tankan survey indicated that the economy is in recession. Investors interpreted this to mean that it would hamper efforts to write off non-performing loans. The survey also said companies expect profits to fall this year. Exporters' stocks rose briefly on expectations the United States will demand more of their goods after economic reports early in the week showed signs of recovery. Some investors were betting that there will be more indications of economic growth, reflecting the Federal Reserve's six rate cuts this year. Although markets here were closed, the U.S. employment report is bound to quash these hopes. Japan's Nikkei 225 stock average fell to its lowest since March 19 and is now about 500 points shy of a 16-year low.

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