Sentiment has improved once again today after the G-20 finance ministers and central banks concluded a meeting on Oct. 15 giving the EU leaders a deadline to come up with a strategy that would eradicate the debt crisis, and that is until Oct. 23 when the European leaders will meet in Brussels for a summit.
“The risk of a recession would be increased dramatically were the Europeans to fail to accomplish goals that they’ve set for themselves”, said Canadian Finance Minister Kim Flaherty after the G-20 meeting during the weekend. Meanwhile the IMF was asked to get more involved to ease EU’s debt crisis.
The European Union Economic and Monetary Affairs Commissioner, Olli Rehn, stated that the plan to eradicate the region’s debt crisis will be delivered in the “coming days”, fueling believes that officials are committed to help banks, sustain Greece and prevent a contagion.
This was able to increase the market participants confidence and demand for riskier assets, where the MSCI Asia Pacific Index rose today by 1.8% at 15:00 inTokyo. Stocks inAsiawere given an upside push by the South Korean finance minister’s statement, saying his economy is doing better than expected.
Stocks in Europe also rose today as risk appetite was boosted where the FTSE 100 rose as of this writing 1.05%, DAX rose 1.60% and CAC 40 rose 1.29%. As Europe and UK lack the fundamentals for today, the focus will turn on the U.S. since it will release data from the industrial sector.
And because markets predict a weaker performance during October for the U.S. industrial sector, the dollar has been weakening today, giving a better opportunity to the currencies and commodities to expand their gains. The dollar index was trading as of this writing around the 76.55 level.
The euro gained today trading around 1.3890, while the pound is trading around the 1.5800. While the yen fell sharply trading around 77.40. Gold gained today and is trading around $1692.00 per ounce, while oil rose above the $87.00 per barrel trading around $87.55 as of this writing.
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