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G20: Market rally continues as finance ministers meet in Shanghai - live

Discussion in 'Market News' started by Lily, Feb 26, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Investors hope for more central bank stimulus, while US GDP could be revised down

    8.22am GMT

    UK chancellor George Osborne has been speaking to the BBC on the referendum and the prospect of Brexit:

    Osborne tells me leaving EU would be 'enormous economic gamble' and he'll do everything to stop it happening

    8.19am GMT

    The French deflation figure of course puts more pressure on the European Central Bank to provide further stimulus at its meeting next month, since it is well shy of its inflation target. ECB president Mario Draghi has already promised he will not hesitate to act, and he may well have to.

    #Spanish #deflation widening to 0.9% in Feb & #Fance seeing deflation of 0.1% piles ramps up already strong pressure on #ECB to act in March

    8.12am GMT

    The recent rally is indeed continuing, with European markets making a bright start on the last trading day of the week.

    The FTSE 100 has jumped 1% or 64 points to 6077, despite an 8% slump in Royal Bank of Scotland following its figures.

    8.09am GMT

    Elsewhere the London Stock Exchange has just said that following its proposed merger with Deutsche Börse, the combined group would be a UK plc domiciled in London.

    The news is likely to help appease some fears that the German exchange was gaining greater control of the business. But Carsten Kengeter, the German banker running the Frankfurt exchange, will become chief executive.

    7.57am GMT

    Despite equal growth of 0.3% q/q, underlying growth of #French #economy in Q4 2015 was slightly stronger than Q3 given hit from Paris attack

    7.50am GMT

    But first we have French fourth quarter GDP, which is better than expected.

    The economy grew by 0.3% in the final three months of the year compared to the previous quarter, which has been revised up from the initial estimate of 0.2%.

    7.47am GMT

    Here’s the schedule for the main economic data due later:

    7.42am GMT

    Royal Bank of Scotland is the latest bank to report its results, and it has announced a £2bn loss, its eighth consecutive year of losses. But chief executive Ross McEwan still received a pay package of £3.9m.

    Our full story is here:

    Related: RBS paid chief executive Ross McEwan £3.9m as it reported £2bn loss

    7.36am GMT

    Global markets are being buoyed again by hopes of more stimulus from central banks and reports that oil producers will meet again to discuss the slump in crude prices.

    As G20 finance ministers meet in Shanghai, the head of China’s central bank hinted the country was preparing to launch another round of stimulus as he sought to reassure the financial markets about the country’s flagging economy.

    Related: Chinese central bank chief hints at more stimulus for slowing economy

    The recent rebound in the yuan does appear to have assuaged concerns that the Chinese appear intent on sharply devaluing their currency, however given the timing and location of this week’s meeting, it seems to me merely good policy to avoid criticism from fellow G20 members. It would not be unexpected to see the yuan start sliding again once this weekend’s meeting is in the rear view mirror.

    The recent call by the IMF earlier this week, followed by the OECD this morning, for the G20 to take bold action at their meeting this weekend could also be a factor behind the rebound in the latter part of this week, at a time when data showed that global trade slowed sharply in 2015, led largely by a slowdown in emerging markets.

    It is highly unlikely that the G20 finance ministers will be able to deliver on anything more substantial than mere warm words and empty rhetoric, though I’m sure UK officials will somehow be able to shoehorn a mention into the statement about the risks of a “Brexit” as “Project fear” continues to get ramped up by the various vested interests in the global economy as well as big business.

    Our European opening calls:$FTSE 6051 up 38
    $DAX 9400 up 69
    $CAC 4281 up 33$IBEX 8273 up 57$MIB 17258 up 153

    Continue reading...

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