Economic growth remains fragileConcerns about global trade outlook add to geopolitical and policy uncertaintyHigh valuations and risk concentration make markets more susceptible to sudden correctionsThis concentration among a few large firms raises concerns over the possibility of an AI-related asset price bubbleGiven low liquid asset holdings, cash shortages could result in forced asset sales that could amplify downward asset price adjustmentsFull publication
Besides that, the ECB also warns of the necessity to implement more prudent fiscal policies. That especially for the likes of France and Italy, who would be borrowing at much higher interest rates in the coming years.
This article was written by Justin Low at www.forexlive.com.
