Stimulus hopes lift sentiment in global markets

(DAVOS, Switzerland) — The fragile state of the world economy, along with the relentless turmoil in Syria and the rocky fallout from the Arab Spring, dominated discussions during this year’s annual gathering of the global elite at Davos, leaving many participants uneasy about what lies ahead as they left for home Sunday. Even broad agreement that there are some positive signs on the economic front, at least in emerging markets, was coupled with a warning from the head of the International Monetary Fund. “Do not relax,” Christine Lagarde said.

(DAVOS, Switzerland) — The fragile state of the world economy, along with the relentless turmoil in Syria and the rocky fallout from the Arab Spring, dominated discussions during this year’s annual gathering of the global elite at Davos, leaving many participants uneasy about what lies ahead as they left for home Sunday. Even broad agreement that there are some positive signs on the economic front, at least in emerging markets, was coupled with a warning from the head of the International Monetary Fund. “Do not relax,” Christine Lagarde said.

Ananthan Thangavel submits:The past week has had financial markets focus on the impending Irish bailout. Starting in April of this year, Eurozone countries such as Greece, Ireland, Portugal, Spain, and Italy have all been under scrutiny for their heavy government debt burdens while economic growth languishes. The huge amount of sovereign debt is worrisome, as it threatens to derail the global economic recovery.

The price of oil edged up to above $84 a barrel Friday on hopes that central banks stand ready to support global financial markets in case of turmoil following Greece's elections.