Europe and Britain
European stocks dropped for the first time in three weeks on concerns about bad loans (especially at German banks), slowing profit growth and lawsuits (concerning asbestos). Blue chip companies reported earnings that lagged analysts' forecasts, offsetting optimism that profits would improve as businesses cut costs. Weak U.S. data overshadowed more positive economic news in Britain, as third-quarter gross domestic product was better than expected (see indicator scoreboard below). Overall, the data suggest that the strength of the British domestic economy is providing an adequate counter-balance to weakness in external demand. The three indexes followed here reacted to the direction of U.S. markets. But by week's end, domestic issues overshadowed U.S. equities' gains, and FTSE, CAC and DAX all lost ground.

Asia
Japanese investors were absorbed by the drama surrounding the latest try to fix the ongoing bank debt crisis. Tokyo shares rose Friday on renewed signs that the government might back away from a hard-line reform plan aimed at making the banking sector dispose of its bad loans. Elsewhere in Asia, indexes were mixed. Investors there continue to focus on U.S. economic data but there was little for them to evaluate. (Most of the week's U.S. data were released on Friday, after Asia's markets closed). Earnings covered a wide spectrum making it difficult to find something to hang one's hat on. The lure of profit taking also put downward pressure on the indexes. And the continuing undercurrent of possible war with Iraq continues to addle investors.

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

The Bottom Line   •   Looking Ahead