European stock markets are showing varying reaction to a G20 pledge to use "all necessary policy tools" to support the single currency. The statement comes at the tail end of this year's Summit in Los Cabos which was the scene of some testy conversations between European leaders and their global counterparts.
Here in the UK, we're seeing a big dip in government bond yields after minutes from the Bank of England showed a 5-4 split by the Bank's Monetary Policy Committee during its last meeting in its June decision to maintain its current £325bn programme of quantitative easing. Governor Mervyn King, unusually, was on the losing end of the tally in his view that the economy needed another $50bn in support. The narrow vote, however, has increased the market's anticipation of further monetary easing, thus lifting bond prices and putting downward pressure on sterling in global foreign exchange markets.
Investors are largely waiting now for the 1915 BST statement from the US Federal Reserve, as the central bank concludes its two-day policy meeting. Analysts suggest Fed Chief Ben Bernanke may opt for more stimulus in order to entice growth – and hiring – in the world's largest economy.