'Systematic Cooperation'
April 3rd, 2009 by Bryden Elssmann
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 7978.08 | 216.48 | 2.8% |
| NASDAQ | 1602.63 | 51.03 | 3.3% |
| S P 500 | 834.38 | 23.3 | 2.9% |
| FTSE 100 | 4124.97 | 169.36 | 4.3% |
| Nikkei 225 | 8719.78 | 367.87 | 4.4% |
| SPI Futures | 3649 | 28 | 0.8% |
| All Ords | 3,622.00 | 95 | 2.7% |
| Oil | 52.61 | 4.15 | 8.6% |
| Gold | 908.9 | -18.8 | -2.0% |
| Silver | 13.025 | 0.05 | 0.4% |
| Aluminium | 1381 | 44 | 3.3% |
| Copper | 4110.5 | 147 | 3.7% |
| Lead | 1259 | 17 | 1.4% |
| Nickel | 10210 | 655 | 6.9% |
| Tin | 11075 | 425 | 4.0% |
| Zinc | 1303 | 42 | 3.3% |
‘Systematic Cooperation’ was the theme at the G20 summit in London with World Leaders agreeing on a blueprint for handling the economic fallout of the Global Financial Crisis. The G20 called for stricter limits on hedge funds, executive pay, credit-rating companies and risk-taking by banks. The G20 lifted sentiment on Wall Street with the Dow up 216.48 points, or 2.79 percent to 7978.08. The Dow is up 20 percent for the last four weeks, the biggest 4 week gain since May 1933. The S&P 500 has also rallied of its lows climbing 23 percent from its 12-year low on March 9. Citigroup and JPMorgan announced they made money in the first two months of 2009.
Oil jumped above $US50 a barrel as the market responded to hopes that demand will strengthen as the economy recoveries. Oil was up $US4.15 or 8.8 percent to $US52.64. Oil rebounded on renewed indication that supply is now in line with demand. OPEC has been reducing supply to match falling demand. They began this tightening cycle in September 08. It will be interesting to see their reaction to the G20 outcomes.
The Aussie dollar has hit a three month high, trading at 72 cents overnight.
We here at Freeman Fox believe the markets exuberance of late has been premature and are still urging caution. Although there has been some good news lately there has also been bad news. The bad news has been ignored. All the stimulus packages and low interest rates WILL work through the economies of the world but it will take time. A huge amount of wealth has been destroyed around the Globe, such wealth, when at work, stimulates economies and growth. We would prefer to err on the side of caution until, at least, next week when we can get a clearer picture of the direction of the market over the medium term.
Have a great weekend.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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