Appeasing markets
September 23, 2011
The Group of 20 (G20) leading advanced and emerging economies have pledged to secure global financial stability, sparking a tentative rise in European markets on Friday.
After sharp falls on Thursday, European shares rallied somewhat. London's FTSE 100 index rose 1.05 percent, Frankfurt's DAX 30 increased by 1.22 percent and the Paris-based CAC 40 gained 1.43 percent.
Asian markets remained nervous, however, recording losses for a second day in a row. South Korea's main Kospi index dropped 5.7 percent and Australia's ASX fell 1.6 percent.
In a joint statement issued late Thursday, the G20 finance ministers and central bankers pledged to take action to calm heightened market fears.
The finance ministers promised to deliver "a strong and coordinated international response to address the renewed challenges facing the global economy."
The statement pointed to "heightened downside risks from sovereign stresses, financial system fragility, market turbulence, weak economic growth and unacceptably high unemployment."
They vowed to respond by working together to support growth and implement "credible fiscal consolidation plans."
"This will require a collective and bold action plan, with everyone doing their part," they said in a statement.
Global slump
The remarks came just hours after markets plunged worldwide, triggering renewed fears that the global economy is slipping back into recession.
World stocks fell to their lowest level in 13 months as tensions over Europe's debt crisis and slow US growth rose.
The G20 is expected to outline measures for boosting the global economy at the G20 leaders summit in Cannes, France in November.
Author: Charlotte Chelsom-Pill (AFP, Reuters, AP)
Editor: Martin Kuebler