The German Ifo business sentiment gauge has lifted to the highest levels in 3-1/2 years, lifting from 106.8 to 107.6 in October, and ahead of forecasts centred on 106.5.

The G20 group of finance ministers and central bank governors have failed to achieve any concrete reforms. On currencies the G20 vowed to ´´move toward more market determined exchange rate systems that reflect underlying economic fundamentals and refrain from competitive devaluation of currencies.´´

European shares were lower on Friday as investors squared positions ahead of the G20 meeting. The FTSEurofirst index fell by 0.4pct, with the UK FTSE lower by 0.3pct while the German Dax lost 0.1pct.

US sharemarkets ended mixed on Friday with financial stocks down and technology stocks generally firmer. Shares in American Express fell by 3.1pct despite better-than-expected earnings. The Dow Jones fell by 14pts or 0.1pct but the S&P 500 was up 0.2pct and the Nasdaq lifted by almost 20pts or 0.8pct. Over the week the Dow rose 0.6pct and Nasdaq lifted 0.4pct.

US treasuries were little changed on Friday given the absence of market-moving economic data. US 2yr yields were largely unchanged at 0.359pct, and US 10yr yields rose 1pt to 2.56pct. Over the week US 2yr yields fell by 1pt and US 10yr yields were largely unchanged.

Major currencies generally range-traded against the greenback ahead of the G20 meeting although the Japanese yen softened. The Euro traded between US$1.3865 and US$1.3970, ending US trade near US$1.3950. The Euro has lifted to US$1.3990 this morning. The Aussie dollar held between USUS97.60c and US98.45c before ending US trade at US98.25c. The Aussie has lifted to US98.75c this morning. And the Japanese yen eased from highs of 81.00 yen per US dollar to JPY81.50, ending US trade near JPY81.35. The Japanese yen is at JPY81.20 today.

US crude oil prices rose modestly in choppy trade on Friday. There was a lack of economic data to provide direction and traders were cautious ahead of the G20 meeting. The Nymex crude oil contract rose by US$1.13 or 1.4pct to US$81.69. Oil rose by 0.4pct over the week.

Base metal prices were mixed on the London Metal Exchange on Friday. Aluminium lost 3.6pct and nickel lost 1.4pct but lead rose by 1.9pct and zinc gained 1.7pct. Over the week base metal prices were also mixed. Lead rose 4.4pct and zinc rose 3.7pct but nickel and aluminium eased 3.4pct and 0.4pct respectively. And the gold price eased a touch ahead of the G20 meeting with the Comex gold futures price lower by US50c an ounce to US$1,325.10. Gold fell 3.4pct over the week.

Ahead: In Australia, the producer price index is released. In the US data on existing home sales is released.

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