Markets Expected to Be Pleased with G20 Meeting

Includes: DIA, GLD, OIL, QQQ, SPY
by: Bill Cara

Equity market prices in New York are expected to start the week on a positive note, if early returns from Europe and Asia-Pacific markets this morning are any indication.

What is clear is that the bankers are happy with the progress they made in the G-20 meetings over the weekend, with the US Treasury Secretary pushing their agenda, this time in the form of an outline, expected to come next as a blueprint for regulatory change to be delivered at the G-20 meeting on April 2.

So, Monday morning, the rally that started last week powered by Humungous Bank & Broker (HB&B) shares is likely to continue. Laggards in Europe and Asia-Pacific today are the Metal Miners.

Reuters reported that right from the open in London: “Anglo American (AAL.L), Antofagasta (ANTO.L), BHP Billiton (BLT.L), Rio Tinto (RIO.L) and Vedanta Resources (VED.L) were down between 0.9 and 2.7 percent. Rio Tinto was weak after reports of further shareholder opposition to the firm's $19.5 billion deal with Chinese state-owned firm Chinalco and delays in approval by Australian regulators.”

In Asia-Pacific and European equity markets today, all of them were strong. At the close, Japan (+1.78% to 7704.2), Hong Kong (+3.60% to 12976.7), Shanghai (+1.15% to 2153.3), Australia (+0.08% to 3297.3), and India (+2.22% to 8950.9). At 6:05am ET, the French CAC (+2.80%), German DAX (+2.09%) and UK FTSE (+1.80%) were all strong.

At 6 am ET, the spot prices for gold, palladium, platinum and silver were: 923.00, 196, 1056 and 13.02, looking a bit soft. For the past few days, London appears to be pushing the PM prices down, followed by some strength in NY.

At 4 am ET, the Crude Oil prices (May contracts) tumbled over -4% as it became clear that the Financials would be favored at the open in Europe. At 6am ET, the price was $45.00. DJIA futures were up +81 to 7304.