© Reuters. FILE PHOTO: Bull and bear statues stand outside Frankfurt’s stock exchange July 2, 2012. Picture taken with a fish-eye lens. REUTERS/Alex Domanski
LONDON (Reuters) – Worries about Ukraine and the removal of help for economies over COVID-19 will challenge markets, which were already showing signs of being overvalued and heading for sharp corrections, the European Union’s securities watchdog said on Tuesday.
Worries over a possible invasion by Russia of Ukraine raises the risk of further bouts of volatility, especially in sectors such as energy and commodities, the European Securities and Markets Authority (ESMA) said in a report on trends in risks.
“We maintain our assessment of very high market and liquidity risks; high credit, contagion and operational risks; and elevated environmental risks,” ESMA said.
“Going forward, we continue to see high risks to institutional and retail investors of further – possibly significant – market corrections.”
Ukraine standoff to test market stability, says EU watchdog
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