Instant view: G20 pledges financial stability but few signs of
Finance officials from the Group of 20 nations on Thursday pledged to preserve financial stability and said central banks were ready to provide liquidity as needed, but a communique after the meeting offered few hints of fresh action to contain Europe's raging debt crisis or revive the faltering global economy.
"We commit to take all necessary actions to preserve the stability of banking systems and financial markets as required," the G20 officials said in a communique after a dinner meeting to discuss the European crisis.
Financial markets were little fazed by the G20 statement after plunging overnight on fears of another global recession and disappointment that European officials have been unable to come up with a coordinated game plan to arrest the euro zone's debt mess.
RADHIKA RAO, ECONOMIST, FORECAST PTE, SINGAPORE
"The G20 communiqué fell short of prescribing the exact medication to address the underlying ills faced by the euro zone members and heightened volatility in the global financial markets at present.
"Assurances were aplenty to preserve the stability of banking systems and financial markets, along with efforts to allay frayed nerves that banks were adequately capitalized and had access the sufficient funding.
"The statements might offer some sense of calm to regional bourses for the immediate term, though we expect the optimism to wear off soon as focus shifts yet again to realities on the ground: Greece's ability to receive the bailout funds alongside containing contagion debt risks out of the euro zone. In light of underlying political and economic differences, it's probably each one for their own."
TIM CONDON, ECONOMIST, ING FINANCIAL MARKETS, SINGAPORE Continued...