Friday, October 28, 2011

Global Market Weekly Review, 16 - 22 October 2011

Germany said European Union leaders will not provide the complete fix to the Euro area debt crisis that global policy makers are pushing for at an October 23 summit. German Chancellor Angela Merkel has made it clear that “dreams that are taking hold again now that with this package everything will be solved and everything will be over on Monday won’t be able to be fulfilled,” Steffen Seibert, Merkel’s chief spokesman, said. The search for an end to the crisis “surely extends well into next year.” Group of 20 finance ministers and central bankers concluded weekend talks in Paris endorsing parts of Europe’s emerging plan to avoid a Greek default, bolster banks and curb contagion, setting the October 23 meeting of European leaders in Brussels as the deadline.

Brazil’s central bank cut borrowing costs by half a point for a second straight meeting, as growth in Latin America’s biggest economy slows amid Europe’s sovereign-debt crisis. The bank’s board, led by President Alexandre Tombini, voted unanimously to reduce the benchmark Selic rate to 11.5% from 12%, as forecast by 61 of 68 analysts in a survey. Five analysts forecast a 0.75-point reduction, and two expected a full-point cut.

Thailand kept interest rates unchanged for the first time this year, ending its longest series of increases since 2006, as the nation’s worst floods in five decades and a weakening global economy crimped growth. The Bank of Thailand kept its benchmark one-day bond repurchase rate at 3.5%, a decision predicted by 16 of 17 economists in a survey.

Source: ING Funds Berhad

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