Global markets continued to display see-saw movements today as investors digested key highlights from day one of the G20 meetings. Policy officials were quick to highlight the structures which are already in place to help increase job creation as well as business development, which led to a temporary boost in investors’ sentiment. However, this proved short-lived as investors quickly realised there was little in the way of new policy creation and more of an emphasis on highlighting the effectiveness of existing measures. Thin volumes didn’t exactly help either.
Japan will be in the spotlight this weekend, as key elections are due to take place within Japan’s upper house. Recent polls indicate that Abe’s LDP party will be successful in expanding their mandate which will allow the Prime Minister to push for more monetary easing and structural reforms. Although the markets are unlikely to perceive a defeat as an excuse for a selloff, any outcome which falls in line expectations makes equities appear a bit more attractive to investors.