World stocks opened the week trading cautiously on Monday, March 20 after the G20’s decision to drop a pledge to avoid trade protectionism.
Asian stocks were mixed, European stocks fell as much as 0.3 percent and U.S. futures pointed to a fall of around 0.2 percent at the open on Wall Street.
The dollar fell to a six-week low, falling four days in a row for the first time since early November.
“European equity markets have started the week with a heavy risk-off sentiment after the G20 communiqué explicitly reflected U.S. intentions to establish trade protectionist measures,” said Ipek Ozkardeskaya, senior market analyst at London Capital Group.
“As the world’s number one economy is preparing to set significant barriers against the world, investors are increasingly worried,” she said.
Financial leaders of the world’s biggest economies dropped a pledge to keep global TRADE FREE and open, acquiescing to an increasingly protectionist United States after a two-day meeting failed to yield a compromise.
The FTSEuroFirst index of leading 300 European shares fell 0.3 percent to 1,487 points .FTEU3, and Germany’s DAX .GDAXI and Britain’s FTSE 100 .FTSE also fell 0.3 percent in early trade.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose almost 0.4 percent to hit its highest level in more than two years on Monday. As a result, MSCI’s global benchmark equity index was little changed, Reuters reports.
On Friday, Wall Street was flat to negative, dragged lower by bank shares that fell along with Treasury yields.