Tuesday, February 22, 2011

Global Market Review - Euro STOXX 50 index tumbled 1.8%

U.S market closed for President Day.

European markets tumbled as concerns over escalating political tensions in Libya weighed. EUROSTOXX50 dropped 1.81%, FTSE 100 dipped 1.05% and DAX down 1.41%.

Group of 20 finance chiefs overcame Chinese opposition to start crafting an early warning system to detect when economic fault lines are opening that may imperil global growth. Seeking to smooth lopsided trade and investment flows which helped plunge the world into a credit crisis and recession, the G-20’s finance ministers and central bankers concluded talks by listing the yardsticks they will monitor to see whether imbalances are forming. Among them: budget deficit levels, the external imbalance and private savings rates.

China’s banking regulator plans to require lenders to set up procedures to allow them to restore their finances in the event of a crisis, a person with knowledge of the matter said. Banks deemed systemically important may have to sell debt convertible into equity, the person said, declining to be identified because the regulator’s deliberations are private. Regulators will also be given broader powers to supervise those lenders in an effort to discover risks early, the person said.

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