Britain and Europe
For most of the week European markets sagged under the weight of poor earnings and job cuts. But late in the week, the indexes rose as investors reacted well to a horde of earnings announcements. London equities hit their lowest levels for nearly three years on Wednesday. The index had not closed this low since October 1998 in the wake of the Asian financial crisis. The FTSE 100 index staged a strong recovery on Friday to close above 5,400 as technology, media and telecommunications stocks rallied along with banking equities. Beleaguered IT shares led a rally in European equity markets on Friday as investors, for once, decided to put the bad news for the sector behind them. All three indexes followed here somehow managed to end the week on the positive side, despite the bumpy ride.

Asia
Asian-Pacific markets ended mixed on the week as investor confidence faded on uneasiness over corporate earnings. The ups and downs in U.S. markets didn't help. Asian stocks languished especially in Japan where first quarter earnings (their fiscal year ends on March 31) were as bad as expected, especially for technology stocks. Jitters prior to this weekend's upper house elections got to investors along with the continuing stream of disappointing economic news. Japan's trade balance plummeted as weakness in its critical export sector mixed with deflation continued apace.

In Hong Kong, investors sold stock because of bad earnings and concerns about the prospects for an U.S. economic recovery. With the economy here so dependent on everything U.S., investors sold.

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

The Bottom Line   •   Looking Ahead