Sept. 23 - European shares fall on renewed fears about the exposure of banks to Greece as risk sentiment remains fragile. Kirsty Basset reports.
There was some respite for European markets on Friday, after G20 finance ministers and central bankers pledged to take all steps necessary to calm global financial markets. But it didn't last. The FTSE Eurofirst 300 index rose slightly in early trade, but by midday had slumped 1.7% on fresh concerns about European banks' exposure to Greece. A day earlier the index lost almost 5 per cent, as world stocks slumped to their lowest point in thirteen months. Analysts expect investors to remain cautious. Gabriele Widmann is an economist with Deka Bank. (SOUNDBITE) (English) GABRIELE WIDMANN, ECONOMIST WITH DEKA BANK, SAYING: "What we expect today for the stock markets is no bigger increase or decrease. We have almost no data so it's depending on if anybody at the IMF or World Bank or the European chiefs of the countries, say anything or not. High volatility with no bigger movement." G20 leaders say euro zone countries have taken major actions to shore up their public finances - and say they're making the bailout fund more flexible - but euro zone leaders remain under pressure to take bolder steps. British Prime Minister David Cameron. (SOUNDBITE) (English) BRITISH PRIME MINISTER DAVID CAMERON, SAYING: "Euro zone countries must act swiftly to resolve the crisis. They must implement what they have agreed. They must demonstrate the have the political will to do what is necessary to ensure the stability of the system." The G20 talks come ahead of two days of meetings of the IMF and World Bank - bringing together finance officials from virtually every country in the world - who all have a stake in seeing Europe's crisis contained. Kirsty Basset, Reuters.