G20 ends meeting in the US without a joint statement and exposes differences between the largest economies
Russia-Ukraine war, conflict involving the USA, Israel and Iran and trade disputes prevented a joint text in Atlanta, according to Times Brasil.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM TIMES BRASIL · 2 MIN
After two days of diplomatic meetings in Atlanta, in the United States, the G20 concluded work without the joint statement expected at the end of meetings of this size. According to Times Brasil, the lack of a common text reflects divergences between the participating countries, which exposes the difficulties of coordination between the largest economies in the world.
According to the same publication, disagreements are concentrated on three fronts: the war between Russia and Ukraine, the conflict involving the USA, Israel and Iran and trade disputes between the countries. Together, these issues occupy a large part of the international economic agenda and make broad consensus difficult.
To close the meeting, a presidential statement was prepared, prepared by Marco Rubio, US Secretary of State. Times Brasil reports that this text will be released without consensus among the 20 largest economies, that is, it will not have the support of the entire group.
The weight of the episode goes beyond diplomacy. When the main countries are unable to even agree on a joint document, doubts grow about the G20's ability to articulate coordinated responses to crises, and this is of direct interest to those who follow interest rates, exchange rates and capital flow.
For those who defend an open economy, fiscal responsibility and fewer barriers to trade, the trade dispute is the most sensitive point. It is in this area that uncertainty usually reaches companies first, which begin to plan more cautiously, and investors, who begin to price more risk.
What changes for the investor
In the short term, the absence of a joint statement tends to increase the perception of geopolitical risk. The effect tends to be stronger in assets linked to foreign trade and in markets sensitive to tensions in the Middle East and Eastern Europe, and can appear on stock exchanges such as the American and Nasdaq, as well as in foreign exchange, in the form of volatility. The available information does not provide any indication of prices, interest or quotations, and therefore there is no basis for predicting direction. The concrete data is uncertainty, not a defined direction for the markets.
Automatically translated from Portuguese.
