Markets begin week on cautious footing
Global stocks are vigilant after the Group of 20’s decision to drop a pledge to avoid trade protectionism, while the Fed’s conservative guidance pushes the dollar lower
London — World stocks opened the week on a cautious footing on Monday after the Group of 20’s (G-20’s) decision to drop a pledge to avoid trade protectionism, while the US Federal Reserve’s conservative rate guidance continued to push the dollar lower. Asian stocks were mixed, European stocks fell as much as 0.3% and US futures pointed to a fall of about 0.2% at the open on Wall Street. The dollar fell to a six-week low, falling for four consecutive days the first time since early November. "European equity markets have started the week with a heavy risk-off sentiment after the G-20 communiqué explicitly reflected US intentions to establish trade protectionist measures," said Ipek Ozkardeskaya, senior market analyst at London Capital Group. "As the world’s number-one economy is preparing to set significant barriers against the world, investors are increasingly worried," she said. Financial leaders of the world’s biggest economies dropped a pledge to keep global trade free and open, ...
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