Central Banks
ECB Warns of Stability Risks From Global Elections, Geopolitics
- Financial markets vulnerable to sudden shifts in sentiment
- Outlook is fragile, Guindos says in Financial Stability Review
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Geopolitical tensions and a raft of elections around the world are heightening the risk that investors will be jolted by negative surprises and endanger financial stability, the European Central Bank warned.
Markets have so far taken a relaxed view on such threats, leaving them exposed to sudden shifts in sentiment in the event of shocks, the central bank said in its bi-annual Financial Stability Review, published Thursday. It also cautioned that European Union and national votes increase uncertainty about the trajectory for public finances.