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Financial markets are calmer on the eve of the G20 summit but policymakers need to be alert for problems.

The crude oil price has fallen 25 per cent since June and the US dollar has surged against the Euro, Japanese Yen and Australian dollar.

Shares markets suffered a correction mid-October, as investors fretted over Europe facing a triple-dip recession and deflation.

The International Monetary Fund says in its G20 surveillance note the recent increase in market volatility is a reminder of the potential risks.

A major talking point among finance ministers and central bank governors at the G20 this year has been the global...

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