Europe and Britain
European markets slipped to end lower on the week as investors fretted about current stock valuations and weaknesses in U.S. markets. Investors were disappointed that most companies only met expectations. And earnings reports from several major companies such as Unilever and Royal Dutch Shell raised questions about the validity of recent sharp gains and sparked some profit taking.

The FTSE was particularly hammered on Wednesday when banks and house builders' shares tumbled on the possibility of increased interest rates. The fears were sparked by the Bank of England's October minutes showing that four of the nine committee members voted for increased interest rates. The vote raised the prospect of a rate increase before the end of the year and a cool down in the torrid housing market. Engineering stocks, which have benefited from economic recovery optimism, were also among the biggest losers.

Asia
Asian stocks were buffeted by investor doubts. Investors are concerned about the heady rise in stock prices and whether levels have gotten ahead of themselves. However, after a two-day plummet, the Nikkei, Topix and Hang Seng were able to stabilize. More importantly, their declines were self contained and did not spread to other areas. The Topix dropped 6.4 percent, its biggest weekly decline since December 22, 2000. The Nikkei also plunged 6.4 percent, its biggest weekly decline since March 2, 2001. On Thursday, the Topix and Nikkei had their biggest one-day drops since the day after September 11, 2001.

The Hong Kong Hang Seng had its first weekly drop in six. Analysts said that the pull back was a natural response to the very strong rally as investors worry about the pace of the global economic recovery.

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