EU Watchdog Warns of Market Correction Risk
The European Union financial watchdog warns that a growing disconnect between weak macroeconomic conditions and upbeat valuations risks triggering an abrupt market drop. Officials also highlight rising cyber threats and crypto market risks.
A widening gap between deteriorating macroeconomic conditions and upbeat asset valuations risks triggering an abrupt market drop, the European Union financial watchdog said on Thursday. The warning from the European Securities and Markets Authority highlights rising geopolitical tensions in the Middle East and higher energy prices. This disconnect threatens to upend elevated valuations that have persisted despite a weakening global economic outlook.
