Europe and Britain
The euro rose but that didn't create a rally for equities in Europe or Britain. Rather, the indexes tanked after rising briefly and spectacularly at midweek. Economic data in Britain were good and the outlook for second-quarter growth is promising, despite a slight rise in unemployment. But again, and it is repetitive, investors are paying little or no attention to economic fundamentals. Instead, investors are transfixed on corporate news and only bad corporate news, which they react to vindictively. On the week, the FTSE sank 5 percent while the CAC tanked 5.4 percent and the DAX plummeted 5.8 percent.

Asia
All Asian equities indexes followed here fell substantially last week. The declines in Japanese indexes had to do with declining profits for exporters because of the climbing value of the yen. Another worry is a slowdown in the United States, the great buyer of global exports. The falling value of the dollar also worries other Asian countries as well. When their currencies appreciate, their merchandise becomes more expensive and less competitive with U.S. goods.

Last Week's Highlights   •   Global Stock Market Indexes   •   Recap of Global Markets   •   Currencies   •  Indicator Scoreboard

The Bottom Line   •   Looking Ahead