U.S. Markets Start Second Quarter on Positive Note as G-20 Summit Gets Underway
Responding to data released by payrolls firm ADP that 742,000 jobs were lost in March, as opposed to the 663,000 job losses analysts had forecast, the market opened decidedly lower on Wednesday morning. However, as the day progressed, stock market investors began to be encouraged by the economic data trickling in and this was reflected in the market. The Institute of Supply Management’s March manufacturing index was 36.3 percent, being slightly above the forecast of 36.00 percent and higher than the 35.8 percent recorded for February. At any other time, this may not have been seen as overly significant, but in the current economic climate where many are clutching at straws, the ISM report, along with a better than expected pending home sales report, is seen as an indication that things are not deteriorating as quickly as anticipated, and may even be leveling out.
Whatever the U.S. markets reflected on Wednesday though, there is no denying that tough decisions need to be taken at the G-20 summit, and with the economy depending on a strengthening of the financial sector and thawing frozen consumer credit, it is agreed that decisions taken at the summit need to be implemented without delay. There are a multitude of varied opinions regarding the potential effectiveness of the summit, which includes leaders from Argentina, Australia, Brazil, Canada, China, European Union, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom and United States, but all agree that something needs to be done – whether the agreement is reached as to what that “something” should be, remains to be seen.