Hints of policy support don’t change the bigger picture

Commodity prices have regained some ground this week on hopes of additional policy stimulus. However, actions speak louder than words. With the exception of widely anticipated rate cuts in China, the world’s major central banks have remained on the sidelines. Policy may well be loosened elsewhere too if the global downturn intensifies, but at best this might limit the downside for risk assets rather than fuel a sustained recovery. In the meantime, the rest of the world is not about to ride to the rescue of the euro-zone if Europeans cannot sort out the region’s problems themselves.