- Recent months have been rather eventful on global financial markets
- The most immediate concern is that ongoing trade tensions could escalate into a trade war
- That has potentially significant negative consequences for global growth, inflation and asset prices
- But the elevated level of uncertainty has not been limited to trade
- We also continue to see strong geographical and sectoral market concentrations
- Negative surprises in a volatile, uncertain environment could lead to abrupt shifts in investor sentiment
- But financial stability in the euro area has remained sound throughout the market turbulence
- Although the likelihood of tail events remains high
- Full remarks
Nothing major from de Guindos really besides reminding that trade uncertainty is not quite dead and buried just yet.
