Citigroup Warns of More Market Turmoil If G-20 Fails to Deliver
- Europe, China, Japan equity gauges have plunged in 2016
- Currency volatility surging with yen, government bonds
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Investors burned by turmoil in global markets are looking for signs the world’s top finance officials are ready to take action to bolster growth and calm currency moves.
As finance chiefs and central bankers from Group of 20 nations gather in Shanghai, Citigroup Inc.’s Steven Englander said a failure to include more explicit support for fiscal stimulus in the closing statement from policy makers would be taken badly by investors. For Andrew Brenner, head of international fixed income at National Alliance Capital Markets in New York, a commitment to fiscal expansion and clarity on China’s currency policy will send equities higher next week, while stocks will slide if those issues aren’t addressed.