Crude oil price continues hovering around 68 level in European morning. We believe thin trading remains throughout the as US and Canada are on public holidays. Stock markets in Asia and Europe gain amid expectations that G-20 leaders will collaborate to oversee the global financial system.
Stock markets in Asia advanced with the MSCI Asia Pacific Index rising +1%. In Japan, Nikkei 225 Stock Average climbed +1.3% to 10320. In China, the Shanghai Composite Index edged +0.68% higher to 2881 and Hong Kong&’s Hang Seng Index gained +1.5% to 20629.
In Europe, benchmark shares surge. UK&’s FTSE 100 Index opens higher and is currently rising +2.6% to 4923. Both Germany&’s DAX and France&’s CAC 40 also add +1.5% to 5465 and 3651, respectively.
Finance ministers and central bank officials from G-20 nations had a meeting in London with the aim of making stricter governance on global financial markets and reviving economic growth. World policymakers agreed that, while the worst recession since World War II has probably hit the bottom, stimulus efforts are needed to ensure sustainable recovery.
Gold changes little with price moving narrowly below the 4-digit level. USD weakens against major currencies except for the Japanese yen. Eurozone&’s Sentix Investor Confidence improved to -14.6 in September from -17 in the prior month. Although the reading was lower than market expectation of -13.7, it suggested market sentiment has turned better in the 16-nation region. Euro advances for the second day to 1.436 against the greenback.
Commodity currencies also jump with Australian dollar rallying to as high as 0.856, the highest level in 1 year. Strength in commodity prices especially industrial metals boost Aussie as the country is an important exporter.
Canadian dollar also soars +1% today after a +1.2% rally Friday against USD. New Zealand dollar also surges for the third consecutive day to 0.6927, almost the highest level in a year.