Several key points emerged from these two days of discussions:
- fiscal policies will be relaxed in an effort to boost demand, in particular in countries with a budget surplus
- the major central banks will continue or even expand their ultra-loose monetary policy
- China, like the other great powers, confirmed its intention not to devalue its currency, in order to avoid a currency war
- Brexit would be a shock, and the risk of it happening must be taken seriously
the systemic risks associated with the FinTech sector (new financial technologies) must be closely monitored
The contents of the final communiqué were broad enough to make everyone happy, including Germany, for whom fiscal and monetary stimulus policies have "reached their limits" and "may even be counterproductive".
However, the vague consensus relayed by this statement does not play well to investors. When the markets opened this morning, the main equity indices were down and bond yields were slipping.