Global stocks rise on G-20 summit

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LONDON (CNNMoney.com) -- Global stock markets advanced Friday, buoyed by hopes that world leaders meeting in Washington would push for changes that will help right the economy.

European stocks traded higher despite declines in the U.S. markets. Britain's FTSE 100 rose 1.5% to settle at 4,233 points. The CAC-40 in France gained 0.6% and Germany's DAX rose 1.3% to settle at 4,710 points.

Markets in Asia were also upbeat. The Nikkei in Japan added 2.7% and Hong Kong's Hang Seng index rose 2.4%.

U.S. stocks, however, reacted to a record decline in October retail sales, Sun Microsystems' (JAVA, Fortune 500) plan to reduce as many as 6,000 jobs, Freddie Mac's (FRE, Fortune 500) crippling quarterly loss, and a report that Citigroup (C, Fortune 500) is getting to lay off another 10,000 workers.

On Thursday, the Dow Jones industrial average added 552 points, or 6.7%. The Standard & Poor's 500 index gained 6.9% and the Nasdaq composite rose 6.5%.

The rally had snapped a three-day drop in which the blue-chip Dow had tumbled more than 7%. But concerns about the economy and outlook for corporate profits continued to hang over investors Friday.

Leaders from the so-called Group of 20 are meeting in Washington Friday to discuss prospects for coordinated regulation to get the world economy back on track.

Leaders from countries including the United States, members of the European Union, China, Saudi Arabia and Brazil, agreed to the summit late last month at the height of the global financial crisis.

The talks are already shaping up to be a meeting of historic proportions, as all heads of state from the G-20 will convene for the first time.

Few experts expect that leaders will enact sweeping policy measures this weekend, but there are hopes that the foundation will be laid for reforms.

Countries around the world have cut rates and launched stimulus plans in response to the unrelenting economic crisis which has spread to every part of the global financial system.