European Central Bank Vice President Luis de Guindos warned Wednesday that the risk of a market correction has increased as investors continue pushing stocks to record highs despite ongoing geopolitical tensions, rising fiscal pressures and concerns surrounding private credit.
Speaking during an interview with CNBC, De Guindos said markets appeared to be underestimating several major risks tied to the war involving Iran, elevated asset valuations, and vulnerabilities in non-bank financial institutions. European and global equities have continued rallying in recent weeks even as instability in the Middle East and concerns over inflation remain in focus.
