Asian trade: Asian markets opened higher for a second day in a row, as the finance ministers from the world’s most developed 20 countries pledge, this weekend, to take the necessary actions to steam the credit crisis.
The top 20 finance ministers and central bankers meet in southern England this weekend, in the regular G20 meeting to discuss ways to put the global economy back on the track. Ahead of the meeting, the International Monetary Fund said that the world’s economy would contract this year for the first time in 6 decades, since World War 2.
The main themes discussed were how to value the toxic assets held by banks, more regulations, and of course pay-caps for bank’s executives. However, the main problem was the stimulus bill, were two different ideologies crashes. European countries refuse to inject additional money into the economy, while the U.S. officials said more should be done. Ironically, the U.S. administration is the one that usually refuses to interfere with the economy, as opposed to the European approach.
Another important decision taken by the G-20 was to extend the IMF’s funds. The extra-money would be used to bail out another few more countries, as the credit crunch is worse. The IMF will have at its disposal $500 billion, and probably more funds will be available, if needed.
Tonight, the Nikkei rose 174.80 points (2.31%) to 7,744.08. The Australian S&P/Asx gained 20.40 points (0.61%) to 3,365.60.
Crude oil declined on a small volume tonight. Crude oil for April delivery fell $0.20 to $44.40.
Gold trades caught between the 20 and the 50-day moving averages. Bullion for immediate delivery fell $1.70 to $928.50.