Ongoing geopolitical and economic vulnerabilities masked by strong investor optimism
ESMA published its second risk monitoring report of 2026, highlighting risks and vulnerabilities in EU financial markets. The report finds that while markets remain resilient, stretched technology valuations and geopolitical tensions pose risks. Strong performance in technology and AI sectors sustains investor optimism, but the disconnect between deteriorating macro-financial conditions and market valuations increases risks of sudden corrections.
Who is affected
Financial market participants, investors, and regulated entities within ESMA's remit
- Language
- EN