PARIS (Reuters) – Stock markets perked up on Monday after world leaders failed to agree on a global bank levy and softened the timetable for new capital requirements at a do-little G20 summit in Canada which posed questions about the forum’s effectiveness.
Shares climbed in Europe and Asia, led by banks, after the U.S. Congress adopted a landmark financial regulation package on Friday and the G20 dropped a 2012 deadline for banks to adopt more stringent risk-provisioning rules.
Leaders of the main developed and emerging economies papered over differences on the balance between reviving economic growth and cutting budget deficits at weekend talks in Toronto, in what was seen as a setback for U.S. President Barack Obama.
In a reversal of the unity of the past three crisis-era G20 summits, the leaders left room for each country to move at its own pace and adopt “differentiated and tailored” policies.
European leaders emerged with what they saw as green light to pursue austerity measures they consider essential to restore market confidence in the euro dented by the Greek fiscal crisis and wider concerns about high European sovereign debt.