Global stock rally continues ahead of G-20 summit

LONDON -- The rally in world stock markets continued Friday as confidence remained buoyed by some signs of a stabilization in U.S. consumer spending and hopes of fresh stimulus packages in China and Japan.

Positive comments from Bank of America Corp.'s chief executive Ken Lewis also helped sustain the market optimism that was stoked earlier this week by buoyant comments from Citigroup Inc.'s CEO Vikram Pandit.

The FTSE 100 index of leading British shares was up 62.70 points, or 1.7%, at 3,774.76, while Germany's DAX rose 36.85 points, or 0.9%, to 3,993.07. France's CAC-40 was up 42.72 points, or 1.6%, to 2,736.97.

Earlier in Asia, Japan's Nikkei 225 stock average jumped 371.03 points, or 5.2%, to 7,569.28, and Hong Kong's Hang Seng climbed 524.27 points, or 4.4%, to 12,525.80.

Markets have responded positively to a raft of fairly good news this week, not least Thursday's U.S. retail sales data, which were not as bad as feared despite massive increases in the number of unemployed.

"In a world where we have all learned to fear and forecast the worst, a glimmer of good news is all it takes to change the mood," said Kit Juckes, head of credit research and market strategy at Royal Bank of Scotland.

Earlier comments from Chinese Premier Wen Jiabao and Japan's Prime Minister Taro Aso — that their governments stood ready to roll out even more measures if needed to reinvigorate growth — sustained the rally into the Asia session.

The mood has been notably different this week than at any time since the financial crisis became most acute last October, with the Dow Jones industrial average up around 10% and the FTSE 100 index around 7% higher.

However, investors are wary of calling the end to the bear market and remain on guard for any news that may knock the stuffing out of the buyers. A failure by the G-20 finance ministers and central bankers to provide a united front at this weekend's meeting in southern England could be one catalyst for a renewed bout of selling pressure.