Europe and Britain
Last week's data continued to show weakening throughout the European economies. Confidence is down and prices, thanks to the weak euro and higher crude oil, are up. And of course, the U.S. election imbroglio and the run up to the U.S. employment situation report on Friday distracted investors. All investors took comfort in Alan Greenspan's speech on Tuesday and responded by having their best day in a long time. Alas, the exuberance didn't last very long, and the markets were down once again on Wednesday. Thanks to the large Tuesday gains, the three indexes finished the week on the positive side, despite new earnings warnings from prominent technology companies. However, the London FTSE 100, Paris CAC and Frankfurt DAX continue to be transfixed by U.S. events, especially the sinking Nasdaq.

Asia
Asian markets blew in the wind, pretty much following the ups and downs of the U.S. markets. In Japan, third quarter gross domestic product disappointed as expected, as did the downward revision of the second quarter. (See indicator scoreboard below.) Japan revised its method of calculating GDP, and analysts are wondering if the new is any better in accurately reflecting economic health than the old methodology. Prime Minister Mori restructured his cabinet and the markets seemed to think that the change would give him more staying power. Earnings disappointments continued to eat into investor confidence. Technology and telecommunications shares continue to suffer as growth slows in the United States. The concern is that demand for components and other computer products will drop.

Hong Kong Hang Seng shows signs of recovery on the hope that interest rates in the United States will fall. This directly affects Hong Kong rates because their currency is pegged to the U.S. dollar and interest rate changes are immediately reflected here. But the flip side is that the United States is a major buyer of Hong Kong exports -- and less exports means weaker health.

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

The Bottom Line   •   Looking Ahead