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ESMA warns of hidden market vulnerabilities amid strong investor optimism

Trading floor at the Frankfurt Stock Exchange
Photo: Thomas Lohnes/Getty Images

Widening gap between investor sentiment and geopolitical vulnerabilities calls for resilience over sudden market corrections.

EU financial markets remained resilient during the first half of 2026, but the resilience is heavily tested by the complex external environment characterized by high inflation, geopolitical risks, and technology valuations paired with lower economic growth.

In its latest trends, risks and vulnerabilities report (TRV), ESMA highlights that the impact of

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