The pace of new economic information picks up significantly in the United States and Europe this week. On tap just prior to the ECB meeting on Thursday, new inflation information will be available. However, no action is expected by the ECB, given statements in its monthly report and by the Bank's president last week. Markets, if they can tear their attention away from earnings, should get a good indication of recent economic performance.

The Group of Seven summit is scheduled in Genoa next weekend amid the emerging market crisis and continued tepid world growth. Opinion is swelling that the dollar's strength is to blame for much of the trouble. What had been an asset is now a liability. In the United States, many point out that a large chunk of manufacturers' woes stem from their lack of competitiveness in world markets thanks to the strong dollar. For those countries whose currencies are pegged to the dollar, debt repayment and competitiveness continues to be a problem. But once again in the United States, the Federal Reserve is proactive while the central banks in Europe and Japan continue to do nothing. Traders will be cautious ahead of the G-7 meeting next weekend.

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

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