G20 Summit Success Evident in Opening Markets
Leaders at the G20 Summit have agreed the solution to the global economic crisis is to cut deficits, start recovery, and stabilize the markets. Investors agreed as the FTSE 100 climbed during the opening on Monday. The FTSE 100 index climbed 0.30 per cent to 5,061.51 points at the open. China’s market showed strength as well.
The US Market’s opening will show how investors viewed the Summit. Obama wanted to increase spending vs. decrease. He lost the attempt to persuade other global leaders to consider the same. Should the US Market fall due to the lack of support or rise because investors disagree with the Obama administration’s efforts may send a message loud and clear. The rise in the FTSE100 is in line with the majority acceptance of the large budget cuts. Even BP saw a slight gain at the market’s opening. It seems the message coming out of the G20 Summit was just what the market needed.