European shares edged up from 26-month lows on Friday and the euro rose after the G20 major economies pledged to preserve financial stability, but risk sentiment remained fragile on fears of renewed recession in the developed world.
U.S. stock index futures pointed to a tentative recovery on Wall Street after finance ministers and central bankers from the Group of 20 said they would take "all steps necessary" to calm the global financial system and said central banks were ready to provide liquidity.
The G20 pledge of action provided a respite for world stocks after they tumbled to their lowest level in 13 months on Thursday, hurt by the risk of new recessions in the United States and Europe and weaker economic data from China.
Metals prices bucked the trend, falling on worries that the gloomy economic outlook signalled lower industrial demand, and analysts said any G20-inspired market bounce would probably be short-lived.
The pan-European FTSEurofirst 300 index (.FTEU3) rose 0.8 percent, after dropping 4.7 percent on Thursday while futures for the S&P 500 (SPc1), the Dow Jones (DJc1) and the Nasdaq 100 (NDc1) were up 0.5 to 0.7 percent.
"It is a relief rally and investors are just picking up some stocks on the cheap," Mark Priest, senior trader at ETX Capital said.
"I do not see how everything has changed overnight. Kick-starting the economy is easier said than done and it will take a lot more than what has been put on the table."
European banks led early gains but some French banking stocks soon came under pressure again. They have suffered heavy losses due to their exposure to euro zone sovereign debt and concerns about their liquidity and funding.
Societe Generale (SOGN.PA), which has lost nearly 60 percent since July, was down 1 percent while Credit Agricole (CAGR.PA) was 2.2 percent lower.
Overall gains in European shares contrasted with falls in Asia, where the MSCI's broadest index of Asia Pacific shares outside Japan (.MIAPJ0000PUS) fell 3 percent to its lowest level since May 2010. That pulled the MSCI world equity index (.MIWD00000PUS) 0.1 percent down.
Global stocks as measured by the MSCI All-Country index are now in bear market territory -- defined as a fall of 20 percent or more from their peak -- having tumbled 23 percent from their 2011 high in May.
The oil price picked up, trading near $106 a barrel, as some investors saw its slide to a six-week low on Thursday on concerns about the global economic outlook as overdone.
The G20 statement came as finance ministers and central bankers met in Washington, under pressure from investors to show action in the face of rising stresses in the financial system.
Source: www.chicagotribune.com
U.S. stock index futures pointed to a tentative recovery on Wall Street after finance ministers and central bankers from the Group of 20 said they would take "all steps necessary" to calm the global financial system and said central banks were ready to provide liquidity.
The G20 pledge of action provided a respite for world stocks after they tumbled to their lowest level in 13 months on Thursday, hurt by the risk of new recessions in the United States and Europe and weaker economic data from China.
Metals prices bucked the trend, falling on worries that the gloomy economic outlook signalled lower industrial demand, and analysts said any G20-inspired market bounce would probably be short-lived.
The pan-European FTSEurofirst 300 index (.FTEU3) rose 0.8 percent, after dropping 4.7 percent on Thursday while futures for the S&P 500 (SPc1), the Dow Jones (DJc1) and the Nasdaq 100 (NDc1) were up 0.5 to 0.7 percent.
"It is a relief rally and investors are just picking up some stocks on the cheap," Mark Priest, senior trader at ETX Capital said.
"I do not see how everything has changed overnight. Kick-starting the economy is easier said than done and it will take a lot more than what has been put on the table."
European banks led early gains but some French banking stocks soon came under pressure again. They have suffered heavy losses due to their exposure to euro zone sovereign debt and concerns about their liquidity and funding.
Societe Generale (SOGN.PA), which has lost nearly 60 percent since July, was down 1 percent while Credit Agricole (CAGR.PA) was 2.2 percent lower.
Overall gains in European shares contrasted with falls in Asia, where the MSCI's broadest index of Asia Pacific shares outside Japan (.MIAPJ0000PUS) fell 3 percent to its lowest level since May 2010. That pulled the MSCI world equity index (.MIWD00000PUS) 0.1 percent down.
Global stocks as measured by the MSCI All-Country index are now in bear market territory -- defined as a fall of 20 percent or more from their peak -- having tumbled 23 percent from their 2011 high in May.
The oil price picked up, trading near $106 a barrel, as some investors saw its slide to a six-week low on Thursday on concerns about the global economic outlook as overdone.
The G20 statement came as finance ministers and central bankers met in Washington, under pressure from investors to show action in the face of rising stresses in the financial system.
Source: www.chicagotribune.com
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