Markets pushed into ‘danger zone’

THE loss of market confidence in economic leadership in the US and Europe, coupled with a fragile recovery, have pushed markets into a new danger zone, something policy-makers have to take seriously, according to the head of the World Bank.

Speaking at the Asia Society dinner in Sydney yesterday, Robert Zoellick also said the global economy was going through a multi-speed recovery, with developing countries now the source of growth and opportunity.

“What’s happened in the past couple of weeks is there is a convergence of some events in Europe and the United States that has led many market participants to lose confidence in economic leadership of some of the key countries,” he said.