Pimco's CEO Mohamed El-Erian told CNBC-TV18 that European policymakers are not ready to commit to unlimited bailouts for debt-distressed countries especially the capping of bond yields.
Brent crude steadied near USD 115 a barrel on Wednesday, supported by hopes that European policymakers will act to resolve the region's debt crisis and by Middle East tensions that kept supply disruption concerns intact.
Even as markets cheered the agreement by European leaders to allow the direct use of the bloc's bailout funds to recapitalize struggling banks, well-known investor Jim Rogers told CNBC the move does nothing to help solve the region`s biggest problem, which is its high debt levels.
Signs that European policymakers are talking about a long-term plan for fiscal integration are encouraging, a top official at credit ratings agency Standard & Poor's told Reuters on Wednesday, but risks remain if decisions are made too slowly.
Italy's prime minister urged European policymakers on Friday to beware of dividing the continent with their efforts to fight its debt crisis, warning against a 'short-term hunger for rigour' in some countries, in a swipe at Germany.
The rupee could test fresh 2-1/2 year lows on Tuesday after doubts over European policymakers capacity to contain the region's debt crisis kept risk appetite subdued and pushed Asian equities and the euro lower.
Spot gold rose nearly 1% on Wednesday to its highest level in more than a month, as safe-haven demand returned on growing doubts over a resolution to the euro zone debt crisis ahead of a key European.
According to Gerard Lyons, the global head of strategy and economics at Standard Chartered, European policymakers will bring about certain changes, but it won't be what markets have been hoping for.
G20 finance chiefs and central bank heads from the world's biggest economies meet in Paris on Friday needing to find a solution to a deepening euro zone debt crisis that has fanned fears of a global recession.
The rupee rose on Tuesday aided by a rebound in domestic equities, but lack of clarity on how European policymakers intend to resolve the region's debt crisis kept the euro choppy, limiting the gains.
Mark Matthews of Julius Baer feels the next few days will be critical for global markets.