Esma Warns of Market Volatility Amid European Elections and Debt Concerns
European financial watchdog Esma has issued a stark warning about potential market instability. According to Esma chief Verena Ross, the bond and stock markets have become increasingly unsettled since the European elections. Investors are now grappling with geopolitical conflicts, interest rate changes, and Europe's political landscape, along with rising national debts in certain member states.
Particularly worrisome for investors are the upcoming parliamentary elections in France, which have already led to increased risk premiums on French government bonds. Ross notes that elections across Europe and in the U.S. this November are contributing to market nervousness. She cautions that this volatility may persist for some time, urging investors to brace for ongoing market fluctuations and unexpected developments.