Europe and Britain
Investors continue to be rattled by the string of technology, media and telecommunications (TMT) earning warnings. Indicators released this week didn't help investors' psyches either. Most indicated slower third quarter growth and purchasing managers' surveys confirmed weaker manufacturing in the fourth quarter. However, investors were determined to get December off on the right foot and the indexes rose Friday, curtailing the three straight days of pain. However, this still left the London FTSE 100, the Paris CAC and Frankfurt DAX on the minus side on the week. The CAC, which had managed to stay above its January first level, slipped to the minus side.

Asia
Relatively speaking, the Asian indexes fared better than their counterparts in Europe and America. Both the Nikkei and Hang Seng recouped a small portion of the losses incurred during the last few weeks. Large scale sell offs by foreign investors and the unwinding of cross share holdings by banks have accentuated the Nikkei's decline. The corporate sector is struggling with long overdue restructuring. And bankruptcies still loom large especially in the insurance and construction sectors.

The impact of slowing U.S. and European growth can not be understated. Virtually all of the Asian economies rely on exports to grow and expand. As growth rates cool in Europe and the United States, alternative markets are not apparent. And domestic demand continues to lag and not take up the slack. In addition, these economies continue to deal with some of the very thorny restructuring problems that were never resolved after the 1997-98 crisis.

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

The Bottom Line   •   Looking Ahead