Confirmed the expectations of the eve. G7 finance ministers and central bankers spoke out ready to “use all the appropriate tools” to fight the spread of the coronavirus. For the moment, however, no concrete action is being taken to mitigate the heavy effects that the virus is having on the global economy, even if the statement released after the meeting suggests the arrival of possible fiscal measures.
“As well as stepping up efforts to expand health services, G7 finance ministers stand ready to take action, adopting fiscal measures where appropriate, to aid the virus response and support the economy at this stage. G7 central banks will continue to fulfill their mandates, in support of price stability and economic growth, ensuring the resilience of the financial system.
In the morning it was Reuters who anticipated that ministers and bankers would not include in their declaration any details on possible policies to be adopted, nor direct calls to governments for greater spending or coordinated interventions by central banks.
In the afternoon, the Minister of Economy, Roberto Gualtieri, spoke on the matter and confirmed: on the occasion of the videoconference "it was agreed with the G7 countries that they are ready to intervene with fiscal measures adequate to support the economy".
Immediately after the release of the press release the European stock exchanges confirm the increases recorded during the morning, but slow down. Piazza Affari, which gained 2,5% in the mid-morning, at 15 pm marks +1,4% to below 20 points. The increases of the other continental lists were more marked: Frankfurt: +2,28%, Paris (+1,77%), Madrid (+1,95%), London (+1,78%). The bullishness on Wall Street subsides. After yesterday's rally, half an hour after the open, futures contracts on the Dow Jones index are up 0,17%, those on the S&P 500 are up 0,06% and futures on the Nasdaq are up 0,45%.
On bonds, the spread between ten-year BTPs and the Bund contracted to 170 basis points from 176 yesterday.
