Europe and Britain
European and British stocks foundered last week on mixed earnings reports and economic data that did not give a clear indication that the growth corner has been turned. The London FTSE 100, Paris CAC and Frankfurt DAX continued to ride the roller coaster of technology stock earnings reports both nationally and from the United States. The U.S. is considered the world's engine of growth and investors overseas continue to take their cue from its markets and economic data. Profit taking in the last two weeks has contributed to the downdraft. People made a quick profit on growth stocks at the end of 2001 and are attempting to take profits ahead of an earnings season that is likely to be difficult.

Asia
The Nikkei 225 stock average has slid 22 percent so far this fiscal year (since April 1, 2001). This has eroded capital at lenders that are already encumbered with an estimated 151 trillion yen of bad and risky loans. Both the Nikkei and Topix (a capitalization-weighted index of companies listed on the Tokyo Stock Exchange) were up on Friday as exporters' stocks rose on improvements in U.S. manufacturing and jobless claims, data which spurred optimism that Japan's biggest trading partner may recover in the first half. And the Topix, after hitting a 39 month low earlier in the week, managed to recoup and gain 0.8 percent on the week.

Bank of Japan chairman Hayami has urged Prime Minister Junichiro Koizumi to spell out how he plans to help banks clean up the mountain of bad loans, which has curtailed the new lending the economy needs to grow. Koizumi has said he will do whatever is necessary to avoid a breakdown in the financial system, fueling speculation the government is ready to pump more taxpayers' money into banks.

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

The Bottom Line   •   Looking Ahead