Britain and Europe
The FTSE ran out of steam on Friday as weak economic data prompted renewed concern over the outlook for corporate profits. The FTSE had climbed more than 300 points over the previous six sessions. The purchasing managers' survey of the service sector gave a hint as to why the Bank of England's monetary policy committee decided to cut interest rates. The index dropped to 50.3, indicating that the sector, which makes up the bulk of the economy, is barely growing while the manufacturing sector continues to decline. In late July, the FTSE 100 briefly dipped to its lowest level since October 1998.

Equities on the DAX and CAC sagged at week's end on disappointment that the ECB did not follow the Bank of England's example and lower interest rates (although nobody was really expecting it). Profit jitters and weak economic data also rattled investors. Thanks to technology stocks the markets initially rose on the belief that the bad news might now be reflected in equity prices. The DAX was the only index to lose ground on the week, as economic reports continued to show the German economy to be the weakest in the EMU. Concern about slowing growth has hurt share prices across Europe. Shares account for 5 percent of household wealth in the countries using the euro, according to estimates.

Asia
After the Nikkei closed at a 16 year low on Monday, investors jumped in to take advantage of the low prices despite continuing gloomy economic data. The index was boosted midweek when semiconductor stocks rose around the world after analysts at Merrill Lynch said that chipmakers' shares had reached a bottom and that the worst of the downturn is now behind. They cited stabilizing earnings estimates, reduced spending on semiconductor production facilities and favorable comparisons to the end of 2000 when technology spending weakened dramatically. All Asian indexes followed here rose on the week.

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

The Bottom Line   •   Looking Ahead