Global stocks rise with eyes on G-20 growth push

The Pak Banker - - MARKETS/SPORTS -

Stock mar­kets gained for the third day in five on Fri­day as G20 pol­i­cy­mak­ers meet­ing in Shang­hai sought com­mon ground on how to re­boot a strug­gling global econ­omy in the face of re­newed fi­nan­cial and political risks.

An­other day of stead­ier oil and cur­rency prices LCOc1 sup­ported the brighter mood af­ter a week marked chiefly by the woes of Bri­tain's pound at the start of a cam­paign over whether to leave the Euro­pean Union in a ref­er­en­dum in June. Set­ting the tone for the Shang­hai meet­ing of the Group of 20, China's cen­tral bank chief, Zhou Xiaochuan, said Bei­jing still had the room and tools to sup­port the world's se­cond largest econ­omy.

Chi­nese . SSEC and other Asian stock mar­kets .N225 made guarded gains and Europe's ma­jor mar­kets were all up by around 2 per­cent. The yuan cur­rency, bat­tered in Jan­uary by spec­u­la­tion Bei­jing would have to de­value sharply, was roughly steady.

Ster­ling gained around half a per­cent against the euro and dol­lar. GBP=D4 EURGBP=D4

"The fo­cus is def­i­nitely on the G20 meet­ing, which has the abil­ity to sup­port the mar­ket, par­tic­u­larly the com­ments from Zhou... that there is no ba­sis for fur­ther yuan de­pre­ci­a­tion," said the head of emerg­ing mar­ket re­search at Credit Agri­cole, Se­bastien Barbe.

"It is key for them to con­vince the mar­ket that they are not go­ing to en­ter into a cur­rency war."

With the world econ­omy fac­ing its most se­ri­ous cri­sis of con­fi­dence since the global fi­nan­cial tur­moil of 2008-9, econ­o­mists and of­fi­cials have raised the prospect of gov­ern­ments pledg­ing to­gether to spend more to bol­ster growth.

Ger­man Fi­nance Min­is­ter Wolf­gang Schaeu­ble, how­ever, was quick to de­clare that the scope for mon­e­tary and fis­cal pol­icy was ex­hausted glob­ally and called for more struc­tural re­form. Ital­ian cen­tral bank gov­er­nor Ig­nazio Visco said mar­kets should not ex­pect con­crete ac­tion from the meet­ing.

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