Global markets rise on G20 deal

The G20 deal helped to cheer up investors Stock markets have rallied after world leaders reached a $1.1 trillion deal to tackle the global economic crisis at the G20 summit. London's FTSE 100 index closed up 4.3%, Germany's Dax index gained 6.1% while France's Cac 40 rose 5.4%. US markets also took heart as the global efforts unveiled added to optimism that the worst might be over for the world economy. In New York, the Dow Jones rose 2.8%, or 216.5 points, to 7,978 points. Stocks were also boosted as the US announced changes to accounting standards that would give companies more freedom in valuing assets and reporting losses. The Financial Accounting Standards Board (FASB) approved the proposals, which could help boost bank balance sheets. Earlier, shares in Asia closed higher. Japan's Nikkei 225 index rose 4.4% while Hong Kong's Hang Seng gained 7%. 'Buying mood' Recent upbeat economic data on the US housing market and on the manufacturing sector has cheered investors. "Everyone is in a buying mood," said Eric Ross, director of research at brokerage Canaccord Adams. "Everyone is feeling good." Hopes that the global downturn might be easing also pushed oil prices up almost 10% to above $50 a barrel. US light, sweet crude was up $4.25 to $52.64 a barrel, while London Brent crude rose $4.31 to $52.75 a barrel. "There seems to be a G20 factor," said Tony Machacek, an oil broker at Bache Commodities in London. "The stock markets are strong and the dollar is weaker. That is also helping the market." Mixed reactions to G20 outcome The final communique from the G20 summit in London has been hailed by participants, but has been met with a mixed reaction from other politicians, trade unionists and activists alike. Barack Obama: The London summit was historic US President Barack Obama described it as "a turning point in our pursuit of global economic recovery." He said it was historic "because of the size and the scope of the challenge that we face and because of the timeliness and the magnitude of our response". German Chancellor Angela Merkel called the outcome "a very, very good, almost historic compromise" that would give the world "a clear financial" architecture. French President Nicolas Sarkozy said the deal was "unprecedented". He believed "a page has been turned" in the history of global capitalism. 'A bitter pill to swallow' But rock star and anti-poverty campaigner Bob Geldof said the deal raised several issues. "A key question the African delegation is asking is whether this will be real new money for their countries, and will it be grants or expensive loans?" David Cameron: G20 doesn't go far enough Conservative leader David Cameron welcomed some of the measures, but worried they did not go far enough. "Giving more money to the IMF to help countries in trouble, that is right; not going further on trade and getting the Doha round started with a timetable, I think that's wrong. The outcome was a "bitter pill to swallow" for Juliam Oram from the World Development Movement, who complained the world leaders had missed a historic opportunity to launch a global recovery plan. "What's missing," he said, "is a global green new deal that puts the interests of poor people and the environment at the heart of international trade and finance." Brendan Barber: The summit has delivered real progress 'Just the beginning' "This summit has delivered real progress in crucial areas with tighter regulation of the financial system," according to TUC General Secretary Brendan Barber, who applauded the crackdown on tax havens and support for the poorest countries. "These mark a break with the failed policies of previous decades. " "The deal contains some very welcome measures but is, as a whole, insufficient to meet the challenges facing the global economy," said Grahame Smith, general secretary of the Scottish TUC. "The failure to agree a co-ordinated global stimulus package is deeply disappointing," "Nobody should imagine this summit is anything more than a beginning," said Adrian Lovett, Save the Children's director of campaigns. "A communique feeds no-one and words alone do not save a child's life... Everything now depends on what those leaders do next." retirado do site da BBC