The G20 summit has been taking place since 2008. The summit brings together the head of states and central bank agents. Recently, the G20 group held a meeting with a sole aim of solving the changing trend of stock markets and the current slowdown in China stock market prospects. The G20 summit took place in Shanghai, China.
The G20 ministers and all central bankers came to a conclusion that there was a need to counter check on the global economy and the evidenced low rates of interests offered by banks.
In the summit, G20 ministers came to a conclusion that the use of policy tools in an attempt of boosting the global economy was a necessary prerequisite. The ministers agreed that financial, structural, and monetary tools were supposed to be used in a collective manner.
The G20 summit meeting took two days, and the results were not that promising. The ministers and the central bankers came with diverse views. According to Steppenwolf Capital founder, the Euro has a high chance to rise to the United States dollar. The prediction was made considering that the G20 members doubted the flexibility of monetary stimulus placed in the economy by the European Central Bank.
In the recent past, the fall of European stock market prospects has been triggered by the eventual rise of the Euro against the dollar in the forex exchange. In the G20 meeting, diverse opinions emerged over the issue of relying on debts to effect growth in the economy. The G20 communique also encountered divisions over the issue of central banks using negative interest rates.
According to Capital analysts, the situation is expected to worsen as the G20 members expressed the occurrence of an ultimate fall of commodity prices in the financial market. The presence of unstable capital flows is also expected to result and the exit of the British economy from the European Union.
Commodities and stocks are expected to face stiff competition and turn-over of events, as the recent meeting held at the G20 summit resulted in the lack of new monetary and global measures.
