Financial stability under further pressure due to Iran war

Summary

The escalation of the Middle East conflict leaves the global economy in a clearly worse state than previously expected. Higher inflation expectations, lower growth and heightened uncertainty are also affecting the financial sector, according to the annual Financial Stability Report from the Dutch Authority for the Financial Markets (AFM). Financial market volatility has increased, with prices being driven more by short-term sentiment. This means greater valuation, liquidity and operational ri...