Geopolitical tension a key risk driver for 2025 and beyond

ESMA’s report highlights cyber and hybrid threats, equity and crypto valuations as key risk areas, but points to market resilience and increased investor confidence.

High or very high risk is present in European financial markets and investors are being warned about the potential for “sharp market corrections” as well as the “liquidity strains they could entail.”

In its second risk monitoring report of 2025 the regulator raises specific concerns about the impact of tariffs,

These

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