G8 concludes that the world economy has weathered the storm
One of David Cameron’s aides has confirmed that the Group of Eight has concluded that the worst of the world’s economic troubles have now passed, raising optimism for growth and improved employment. The leaders of the G8 insisted that while the economic situation as it stands is still very fragile, the possibilities for another downward turn have receded.
The aide continued to say that the G8 felt much of the new found optimism was a direct result of the economic policies in Japan, the United States and Japan — all of which are currently undergoing a massive monetary stimulus program which is designed to spark their respective economies back into life.
Despite the positive tone of the announcement, investors remain cautious as they look at the present situation. The UK is currently amid a double dip recession, China announced a slowdown in economic growth for the first quarter and the Eurozone is far from stable — particular with recent events in Greece. Further adding to concerns is the current volatility in the markets in Japan, where confidence in their economic stimulus package is still in question.
However, investors seemed to take the news well, leading all the major indices to rise. The Nikkei 225, which will get a chance to reach shortly, rose 2.73%, leading the region in gains as the Hang Seng and ASX 200 advanced by 1.22% and 0.71% respectively.
In Europe the FTSE 100 advanced by 0.35%, following the lead of the Stoxx 50 which advanced by 1.33% and the DAX in Berlin where gains of 1.08% were achieved. The US markets also saw small but healthy gains as the Nasdaq lead the way with an advance of 0.83%, trailed by the S&P 500 and the DJIA which advanced by 0.76% and 0.73% respectively.