Many analysts believe that these employment statistics are good measures of current economic activity. To date, they indicate an economy that is softening. International Economies Slowing and Stocks Weak Similar to the U.S. situation, international economies are generally weakening and stock markets were mostly down in the first quarter. This widespread weakness reflects slowing economic performance. For example, Japan not only confronts lower exports to the U.S., it also faces anemic domestic growth.
Japanese banks face tremendous credit problems and are unable to lend at normal levels.
In contrast, the European economies have generally been stronger than the U.S. and have only recently shown signs of weakness. Baseline Past performance is not a guarantee of future results. An investor cannot invest directly in an index. Emerging-market returns were quite varied over the first quarter of 2001. When these returns are translated for U.S. dollar-based investors, however, the returns turn negative.