G20 agreement sees shares rise

| November 10, 2009 | 0 Comments
G20 agreement sees shares rise

Over the weekend, G20 finance ministers at St Andrews in Fife reached an agreement to maintain financial support until recovery is ensured.

The agreement was reached following concerns over rising unemployment and unsteady growth which saw finance ministers from developing and rich countries vow to keep fiscal measures in place until global recovery is assured.

The International Monetary Fund (IMF) also believes that stimulus measures needed to stay in place and said: “An overarching risk is that the recovery stalls owing to early exits from record-low interest rates and massive state cash injections.”

The pledge to maintain support within the global economy sent the Dow Jones Industrial Average soaring 203.52 points (2.03%) to 10226.94 - its highest close in 13 months.

European stocks were also up on the day with London’s FTSE 100 index up 1.8%, France’s Cac 40 rose 2.1%, while Germany’s Dax gained 2.4%.

In the meantime, gold rose to a record high $1,104.80 per ounce yesterday, as the US dollar continued to fall.

Gold traditionally rises during the October to December period as the run-up to Christmas and the Indian festival of Diwali pushes up demand.

So far this year, gold prices have increased more than 25% across the world.

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