It’s 3:30am in Chicago and the markets in Asia had a great run today. Markets in Europe also opened strongly on the positive. All these on the day the world’s top 20 leaders face for a summit in London. The question is, what caused/is causing this rally? (False) hopes on the G20 meeting or something else?
At least at the moment, what we know is that the rally in Asia was partly caused by the better-than-expected decline in car sales in the US, which some believed to be a sign that the worst is over and things are starting to stabilize.
As for what’s going on in Europe, it could be an extension of that. Or the expected cut on the interest rate by the ECB (by 50bp to 1pc). Markets in the US are shaping up to be an extension of yesterday’s rally ahead of the FASB’s decision whether to suspend the mark-to-market accounting.
Tables courtesy of Bloomberg.
This is how the markets in the US ended yesterday….
…and this is how things are shaping up for today.
Here’s how the markets in Asia closed (look at the Hang Seng!):
Not shown above are performances of the Korean market, which closed more than 3.5% higher while that of China showed a smaller improvement. Here’s how Europe is doing so far, a little over an hour after opening:
I’d like to believe it’s about the things un-G-20.