Business
The heads of the G20 rich and developing nations promised to clamp down on risky behaviour by banks without restricting lending, and agreed to give banks more time to adopt tougher rules.
Updated : Mar 30, 2018, 03:09 AM IST
G20 leaders meeting in Toronto agreed to take their own paths to ensuring economic growth and left room to move at their own pace, trying to balance contrasting priorities by pledging to halve budget deficits by 2013 without stunting growth.
The heads of the G20 rich and developing nations also promised to clamp down on risky behaviour by banks without restricting lending, and agreed to give banks more time to adopt tougher rules.
That followed an historic overhaul of financial regulations by US lawmakers on Friday, with banks forced to spin off swap trading operations. Banks will be able to keep most of their books but will be barred from commodity, equity and some credit default swaps.
"I don't see much substance from G20," said Lin Yuhui, deputy general manager of Jinhui Futures.
"Basically it's saying everyone is back to minding their own business, just like before the crisis," Lin said.
The MSCI index of Asia Pacific shares outside
Financial bookmakers said Europe's main benchmark indexes would likely head in the same direction, with spread betters expecting Britain's FTSE 100, Germany's DAX and France's CAC- 40 to open as much as 0.9% higher.
Investors will have to weather a welter of US data this week, including June jobs numbers on Friday, consumer confidence, pending home sales and some early earnings reports.
In
A muted reaction to the G20 meeting didn't help, with the Japanese market slipping across the board.
Wall Street had finished almost unchanged on Friday, although financial stocks had gained on relief that the US financial regulation bill would not inhibit Wall Street profits as much as had been feared.
Underlining the less-than-decisive conclusion to the G20 summit, Angel Gurria, head of the Organisation for Economic Co-operation and Development, said the "incipient recovery" offered policy choices but also made it harder to find common ground.
"When the house was on fire, we all knew what to do: get a hose," Gurria told G20 leaders.
Asian debt spreads narrowed after widening in the previous four sessions, with investors encouraged to buy riskier assets after the G20 leaders committed to cutting budget deficits.
The
Signalling the difficulties groups such as the G20 have in addressing matters crucial to global economic imbalances,
The People's Bank of China set the yuan's daily mid-point at 6.7890 against the dollar, on Monday, a new post-2005 revaluation high.
The yuan has risen about 0.5% in the past week since the PBOC said on June 19 that it was unshackling the currency from its two-year-old peg to the dollar, but gains have been kept in check by big state-owned banks and any further appreciation is expected to be glacial.
Investors seeking to cut long positions in favour of the greenback had the dollar on the defensive on Monday. The euro held gains as the focus shifted to the sustainability of a
The dollar index edged up 0.1% to 85.43, holding above last week's low of 85.09. The dollar hovered near a five-week trough against the yen after data released on Friday showed
"I have a feeling in my bones that perhaps Friday was the start of the market questioning the viability of the US as the safe haven," said Tim Lovell, an economist at ICAP in Sydney. Higher commodities and the subdued US dollar helped the Australian and
The Australian dollar held firm at around $0.8750.