Emerging markets strikes optimism

The MCSI world index of 23 developed nations added 0.4% in early New York trade,while Emerging Markets gauge advanced 1%.Futures on the standard&poor's500 index swung between gains and losses as Americal International's Group bigger than forecast qua- rterly loss overshadowed an expansion in gross domestic product that beats estimates. Britain emerged from recession at a faster pace than previously estimated in the 4th quarter. The economy expanded 5.9% in the 4th quarter of 2009. 'The emerging markets are a strong story' says Ganske, head of Commerz bank AG in London. The movement is a reaction to the market being depressed over the past couple of days. We are facing a period of higher volatility rather than a long-term, sustained rally". Europe's Dow Jones stock climbed 0.5% as all but 3 out of 19 industry group advanced Saint-gobain Europe's biggest suppliers of building materials surged 7.5%. Rio tinto Group led in mining companies rallying 2.6% in London The MSCI Asia pacific index advanced 0.6% capping its biggest weekly gain in six weeks. Woolworths-Australia's biggest retailer, climbed 5.5% in Sydney as it announced a share buyback. India's sensitive index advanced 2.5% in two months.Emerging Market stock gain were packed by a 0.8% advanced in Turkey's ISE 100 index. Greece's ASE Index rallied 1.9%. The dollar and yen fell against most of their counterparts as signs of global economic recovery and gain in global equities encouraged demand for higher yeilding assets. The dollar declined 0.1% to $1.3560 per Euro early in New York in Feb-26 from Feb-25. It reached $1.3444 on Feb-19, the strongest level since may 18,2009. The yen traded at 120.83 per Euro from 120.69 in Feb.25 when it advanced to 119.66 the strongest since Feb-24,2009. Gold climbs above $1,108 as dollar slips Gold price rose on Feb-26, yesterday, supported a rebound in euro versus the dollar after the previous sessions weakness. spot gold was bid at $1,108 an ounce at 1313GMT against $1,104.7 late in New York on Feb-25. The precious metal has gyrated within a range of around $1,075-1,130 from the last two weeks. Yesterday the euro's rebound from the near nine months low against the dollar in the previous session supported gold,but many expect the currency to stay under pressure. Oil rises towards $79 after US GDP data Following an upward revision in US GDP oil rose to $79 a barrel. The 5.7% growth registered in US maintained a higher level of 5.9% this year start.Rising expect- ations for final demand in the world's top energy consumer. US crude for April delivery rose 74 cents to $78.91 a barrel on Feb-25.Price earlier rose more than $1 to a high of $79.34 a barrel.