G20 to inspire risk?
City Index February 24, 2014 2:03 PM
<p>The G20 in Sydney over the weekend pledged to boost advanced economies by $2 trillion over a five-year period, raising GDP by 2% by keeping […]</p>
The G20 in Sydney over the weekend pledged to boost advanced economies by $2 trillion over a five-year period, raising GDP by 2% by keeping monetary policy accommodative. Below is the official line:
“We agree the global economy still faces weaknesses in some areas of demand, and growth is still below the rates needed to get our citizens back into jobs and meet their aspirations for development. Recent volatility in financial markets, high levels of public debt, continuing global imbalances and remaining vulnerabilities within some economies highlight that important challenges remain to be managed.”
Chinese news has left me a little concerned for risk this morning as Chinese Finance Minister Lou admitted to Chinese media to slowing growth but felt policy can’t be loosened due to the high debt levels, with local media reports suggesting that Chinese growth rates of 9%-10% are levels of the past as they focus on low inflation and jobs. The CNH is under further pressure today following reports that Chinese banks may have tightened lending to property developers in an effort to further cool the property market.
ECB President Mario Draghi told reporters at the G20 that the Central Bank’s March policy meeting could be critical in determining whether the ECB will provide more stimulus to the ailing eurozone economy. “By then we’ll have the full set of information needed for us to decide whether or not to act.”
The data release today will give super Mario just that with the release of the IFO survey from Germany along with final reading of the January HICP data.
Supports 1.3700-1.3660-1.3580 | Resistance 1.3780-1.3825-1.3895
Supports 102.15-101.75-101.45 | Resistance 102.80-103.00-103.50
Supports 1.6625-1.6600-1.6550 | Resistance 1.6740-1.6820-1.6880
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