ESMA – TRV Risk Monitor

Markets in ESMA’s remit have remained remarkably resilient in 2H23, despite the confluence of risks that prevailed throughout the year. Overall, risks remain at high or very high levels. Going forward, markets are set to remain very sensitive, especially to the market impact of higher-for-longer interest rates, the macro-financial outlook, and geopolitical and peripheral risks. There is a high risk of corrections in a context of fragile market liquidity in equity, bond and crypto markets, with special concern relating to real estate exposures. Inflation has declined but continues to weigh on investors’ real returns.