On the edge of panic, markets look for reassurance

The prospect of panic hitting the equity markets at Monday's opening has forced the G-7 finance ministers to call an emergency meeting to discuss both the US credit downgrade and the deteriorating debt situation in the Euro zone. Reuters: The Group of Seven leading economies agreed to hold an emergency phone meeting of finance ministers and central bank governors on Monday, Kyodo news agency reported on Sunday. At the meeting, Finance Minister Yoshihiko Noda is expected to pledge that Japan will continue to buy U.S. Treasuries, Kyodo said without citing any sources. The ministers will likely discuss measures to prevent turmoil in financial markets amid U.S. and European debt problems, it said. Japanese government sources have said the G7 finance leaders will likely hold an emergency phone meeting, probably before Asian markets open on Monday... Also, the European Central Bank will start buying Italian bonds now that Prime Minister Berlesconi has announced austerity measures,...(Read Full Post)