UK markets were hit heavily this week by outside influences, especially from the US. Monday saw the FTSE 100 fall below 4,000 and to its lowest level since December 1996. As the week went on, the FTSE 100 staged a remarkable comeback.
Disappointing news from the US on Friday virtually wiped out the gains made during the week, leaving investors again near to the 4,000 mark. For the first time since 2000 in European markets the Euro strengthened against the Dollar, proving just how hard the US has been hit recently. Exporting stocks were thrown into turmoil and the week's trading was exceptionally volatile. Gains and losses were seen throughout the week but losses were seen in the main from stocks across the board.
US markets had another one of those weeks. It started off on a positive note after the Dow Jones plummeted around 400 points but came back amidst the excitement of the merger of two massive companies. Even the Nasdaq ended the first day of the week in the black. President Bush and Alan Greenspan of the Federal Reserve gave the nation a reassuring talk about the country's economics, with analysts saying that the worst might not yet be over. Another almost 400 point drop was seen at the end of the week, making it 9 out of 10 days in the red and a double digit loss for the Dow Jones over the last two weeks.
Far Eastern markets had a mixed week with most of it in the red. Markets in South Korea had a short week as they were closed on Wednesday for the holidays. Most of the week had been led downwards by the US Dollar weakening against the Yen, putting pressure on Japanese exporters. However, news that the Bank of Japan may intervene to bring the Yen lower and the fact that the Dollar made a comeback, boosted at least some of the markets. Investors seem very nervous about the state of US markets, especially in terms of accounting standards.