What the G-20 Call for More Fiscal Emphasis Means for Investors
Shift toward fiscal policy may boost banks and steepen curves.
G20 Finance Ministers and Central Bank Governors pose for a group photo during a conference held in Chengdu in Southwestern China's Sichuan province, on July 24, 2016.
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The Group of 20 meeting in China added to the chorus of voices calling for more fiscal measures to boost growth, which could have important implications for asset prices if carried out successfully.
With markets accustomed to a world of ever more innovative monetary policy, analysts from Deutsche Bank to Morgan Stanley say such a shift could in time lead to higher yields and steeper curves, and support bank stocks.