A dose of reality is always difficult for investors to digest. Such is the case in Japan, where officials seem ready to bite the bullet on bank and debt reform. These problems go back to the late 80's asset bubble and have impeded recovery. Falling asset prices and deflation hasn't helped either. As a result, the Nikkei has sunk to its lowest level since 1982 (see graph in Last Week's Highlights above). More details of the government's plan should unfold this week and next. A rare note of optimism can be found in the cooperation that the Bank of Japan and the government seem to be showing.

The Bank of Canada will be making its monetary policy announcement Wednesday. Analysts are expecting interest rates to stay where they are. The Bank has raised rates twice - in June and July - because of stronger growth along with robust labor markets.

Key economic data will give equities investors a new look at their respective economies. So will the continuing onslaught of earnings reports.

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

The Bottom Line   •   Looking Ahead