The G-20 does not give the desired impetus to investors in Asian trade today, it is felt by most of the shares in the region reported a decline. After meeting the most developed economies, held in Canada this weekend, was circulated communique, which gives a greater grace period for banks to increase their capital and liquidity and which promises to strike a balance between fiscal consolidation (reducing the deficit ) and the ongoing measures to stimulate the fragile economic recovery. Meanwhile, one of the biggest players in the forex market – John Taylor, who runs the biggest currency hedge fund FX Concepts LLC stated that “we are very scared some owners euro. Taylor predicted with great accuracy the decline in the single European currency had two months, said he hoped the depreciation of the euro should not last longer than August. Asia-Pacific MSCI Asia Pacific Index closed with a fall of 0.1 percent. Nikkei fell 0.45% (due mainly to the strengthening of the yen forex market that Japanese exports more expensive), Hang Senga rose by 0.49%, Shanghai Composite fell by 0.58 percent, while South Korean Kospi index rose by 0.13 percent, says Finance.news.bg . Before the official start of trading in Wall Street index S & P 500 reported a decrease of 0.1%. European index futures 600 Euro Stoxx went up after last week they reported the first index to decline last month. FTAE100 futures rose by 0.6%, the DAX by 0.5% and 0.9% CAC40.
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New recession in the euro area is unlikely, a depreciation of the euro will help reduce the negative effects that have measures to reduce the debt on economic growth, says Pier Carlo Padoan, chief economist of the Organization for Economic Cooperation and Development (OECD) said from CNBC. Governments need to pursue fiscal consolidation and reforms in the pension insurance system and labor market to promote economic growth, said Padoan. To convince skeptical financial markets in the effectiveness of its strategy, governments should also show that the coordinated work, he added. Even measures to reduce the debt limit growth in the eurozone, it will be partly offset by increased demand for European goods from Asian and other markets due to their better competitiveness resulting from weaker euro, he said. According to data from the European Central Bank the value of the euro against the U.S. dollar declined by 14% this year, while trade-weighted value of the euro has decreased by more than 10%. “Will there be a” W-shaped “recession in Europe? I do not think, “said Padoan, emphasizing that the massive debt following the global recession in 2007 – 2009,” is not just European history “and that Europe will deal with this problem faster than others.
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