BEIJING (AP) – Global stock markets and the price of oil rose Monday as investors expected finance ministers and central bank chiefs from major economies to indicate more stimulus is possible to help world growth.
KEEPING SCORE: In Europe, Germany’s DAX gained 1.8 percent to 9,555.24 and France’s CAC-40 added 1.6 percent to 4,291.14. Britain’s FTSE 100 rose 1.2 percent to 6,022.18, though the pound was hit hard by concerns over the country’s popular vote this year on whether to leave the European Union. Wall Street looked set for gains, with futures for the Dow Jones industrial average and the Standard & Poor’s 500 both up 1.1 percent.
STIMULUS HOPES: Investors are hoping this week’s meeting of finance ministers from the Group of 20 major rich and developing economies will spur moves to shore up global growth. Japan’s center bank governor has called for the officials meeting Friday and Saturday in Shanghai to commit to coordinated action. The European Central Bank is already expected to offer more stimulus at its next meeting in March. But private sector analysts say fiscal and monetary policy options are limited following repeated rounds of stimulus.
ANALYST’S TAKE: “The weekend meeting of G-20 Finance Ministers will be the major focus this week with global growth woes likely to be the event headline,” said Stephen Innes of OANDA in a report. “Don’t expect any magic bullet solution to appear but a policy consensus among ministers might go a long way to shoring up investors’ sentiment.”
ECONOMIC WEAKNESS: Economic surveys suggested more weakness in the 19-country eurozone and Japan. A measure of overall business activity in the eurozone fell to a three-month low in February. In Japan, a measure of manufacturing showed activity fell to an eight-month low, due largely to weak export demand. The Japanese data suggest “business sentiment has suffered from the sharp falls in the equity market and the stronger yen,” Marcel Thieliant of Capital Economics said in a report.