G-20 Meeting and Kraft Food’s Bid Impact on the U.S. Market

U.S. stock futures made a strong advance Tuesday, Equity markets in Europe and Asia advanced while the U.S. was shut. Analyst expects US market to continue its rally till Thursday and expects a low dip of 1% by Friday. It is in lieu of G-20 meeting result and Kraft Food’s bid for Cadbury. The Group of 20 called for tougher capital adequacy standards for banks and pledged to continue fiscal and monetary stimulus while rejecting a Franco-German proposal to cap banker pay. There also was Kraft Food’s (NYSE: KFT) $16.7B cash-and-stock bid for Cadbury (CBY) , which in U.S. shares is valued at $48.79 a share. Cadbury's London-listed shares rallied approximately 40% on the news. Cadbury rejected the bid, saying the offer "fundamentally undervalues”. Analysts said Kraft (KFT) may raise its offer, and a joint offer from Nestle (NSRG.Y) and Hershey (HSY) also is considered a possibility.