Recap of Global Markets
Europe and Britain
Investors, sweltering in unprecedented heat, couldn't make up their minds. Stocks were down, paced by exporters such as DaimlerChrysler AG on concern that the U.S. economy may not grow as quickly as some investors had hoped. With a paucity of economic data available in the U.S. (albeit what was available was positive) and the earnings season winding down, those investors not on vacation were fretful. As a result, the rally that last quarter sent stocks to their biggest quarterly gain in 3½ years has stalled.

The indexes ended the week on an upbeat note, even though both the DAX and CAC were down 3.1 percent and 0.1 percent, respectively, on the week. The FTSE 100, however, advanced 1.2 percent in the week. The index was powered by a North Sea oil find, which buoyed major oil companies such as Shell. European shares have barely extended this year's gains ever since bond yields began to climb from the lowest levels in decades.

Asia
Of the six Asian/Pacific indexes followed here, only the Australian all ordinaries managed to end the week on a positive note. And this was despite a surprising decline in employment and a corresponding increase in the unemployment rate. (See indicator scoreboard below.) Investors here continued to look to U.S. markets for direction and they didn't get any. Earnings reports from Japanese exporters continued to weigh on the market. Since reaching the 10,000 level in early July, the Nikkei has been sliding. The Topix, which peaked at about 980, has tracked the Nikkei's decline. Both indexes have dropped about 6.5 percent since their peak just a month ago.

Japanese capital flows in the week ending August 1st showed that Japanese investors were net sellers of foreign bonds for a seventh straight week, again confirming moves of Japanese money out of international fixed-income markets. Japanese accounts were modest net sellers of foreign stocks, ending a two-week buying spree. On the other side, foreign investors were buyers of Japanese stocks despite their recent decline. Foreign investors were net sellers of JGBs, data released by the Ministry of Finance Friday showed. The data suggest net yen inflows of ¥983.6 billion in the period.

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

The Bottom Line   •   Looking Ahead