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European markets cheer G20/IMF meeting

FXstreet.com (Barcelona) - The German DAX 30 (+0.78%) and the French CAC 40 (+0.70%) are up on Monday, like the Spanish IBEX 35 (+1.90%), the Greek ATHEX (+1.93%) and the Italian FTSE MIB (+2.34%). Equity markets are higher today, pricing in their thoughts about the outcome of the G20/IMF, more inclined towards growth rather than fiscal dogma. In Italy. President Napolitano was re-elected to a second seven-year term (738/1007 votes), PD’s Bersani resigned after no agreement in five votes. “So Italy has a President but no leader for its largest party”, wrote analyst Annette Beacher, adding that Napolitano’s desire is for a broad coalition government that adopts much-needed electoral reforms, which would be market positive.

Reuters reported that Luxembourg Finance Minister Frieden said the Cyprus bail-in shouldn’t be repeated and that the Eurozone has to be able to intervene in troubled countries without formal request from such country. The EUR/USD isn’t particularly fussing about such comments.

Greece current account deficit widened from €-0.222B to €-0.716B in February. The preliminary release of EMU consumer confidence in April due at 14:30 GMT is expected to drop from -23.50 to -23.85. US existing home sales should ease its rising pace from 0.8% to 0.6% (MoM) with a move from 4.98M to 5.01M in March.

American futures for the S&P 500, Nasdaq 100 and Dow Jones 30 are too signaling a higher opening ahead of the New York session, by +0.40%, with a light economic calendar starring US existing home sales. “Existing home sales for March are expected to hit the 5m mark for the first time since the stimulus-induced pop in November 2009. Sales have not been sustainably above 5M since mid-2007”, wrote TD Securities analysts.

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