Non-specific meeting

The G20 summit did not change investors' view of the crisis

The G20 summit made little impression on global investors and yesterday there was muted pessimism in global stock markets. According to analysts, there is no reason for growth in the near future, but one should not expect a sharp drop.

According to British Prime Minister Gordon Brown, the results of the summit will lead to a “global economic recovery.” “This is the path to a new Bretton Woods (in 1944, the foundations of the post-war financial order were developed in Bretton Woods and the International Monetary Fund was created. - Ed. ). It is clear that we are trying to build new institutions for the future,” he said. Mr Brown is also pleased with the language in support of “fiscal measures to quickly stimulate domestic demand”, as he intends to implement exactly such measures in England. The head of the Bundesbank and a member of the governing council of the European Central Bank, Axel Weber, believes that the plan adopted by the leaders of the G20 countries is an important step towards reforming the financial system and restoring confidence: “For the first time, developed and developing countries have adopted a comprehensive action plan aimed at strengthening the global financial architecture".

Analysts and investors are more pessimistic in assessing the results of the summit and its impact on world markets. “We didn't hear anything at the G20 meeting that could change the market's view of the global economy or the measures the authorities are taking to combat the crisis,” said Daragh Maher, currency strategist at Calyon bank. “Market participants were focused on the deterioration of the global economy, paying little attention to the G20 summit,” said Saburo Matsumoto, chief currency strategist at Sumitomo Trust Bank. “The pressure on the economy from the financial crisis is intensifying, and there is uncertainty about when the worst moment will be.” "G20 leaders have called for swift action to combat the global financial crisis, but concerns about weak international economic growth are still weighing heavily on prices," said a Commonwealth Bank of Australia analyst.

Deputy Minister of Finance of the Russian Federation Dmitry Pankin said yesterday that he sees no contradictions between the anti-crisis plan of the Russian government and the statement of the G20 leaders prepared following the meeting in Washington. Commenting on the fact that the G20 statement contains provisions related to countering protectionism, Mr. Pankin noted: The G20 calls not to introduce new trade barriers, but we are not talking about the abolition of all existing mechanisms to protect national producers. At the same time, the government’s anti-crisis plan contains measures to protect Russian producers. The point of the G20 statement is a long-term move away from protectionism.”

As a result, stock market trading became more dependent on local news. The Japanese stock market grew due to the weakening of the yen and the active purchase of securities by pension funds. As a result, the Nikkei index rose 0.71%. At the same time, the South Korean KOSPI fell by 0.91% at the end of the session, following shares of technology companies. MSCI's index of Asia-Pacific shares excluding Japan lost 1.5% as investor concerns grew over a decline in exports amid the global crisis.

Volatility was observed in European trading yesterday. At first, the markets declined, then they began to recover thanks to the securities of oil and gas companies. The pan-European FTSEurofirst 300 index rose 0.12% in the morning. However, by the middle of the session, the main indices fell by about 2% due to the fall in financial sector securities. The British FTSE 100 index fell by 1.72%, the French CAC 40 by 1.91%, and the German DAX by 2.19%. The US stock market opened lower. The Dow Jones index fell 1.79%, the Standard & Poor's 500 fell 1.51% and the NASDAQ fell 1.46%.

The Russian market was under pressure from falling oil prices, which returned to their minimum level by the evening. December futures for the American benchmark WTI fell by $1.49 to $55.55 per barrel. January Brent crude futures lost $1.18 and were quoted at $53.06 a barrel. Russian Urals fell in price by almost $1.5, to $48.64 per barrel. As a result, the RTS index lost 5.97%, falling to 605.56 points, and the MICEX index - 5.27%, trading ended at 560.86 points. Shares of Gazprom fell by 5.9%, Sberbank - by 9.89%, Norilsk Nickel - by 11.59%, LUKOIL - by 11.88%.

Nikolay KOCHELYAGIN