Trade tensions could fuel further drop in asset prices – IMF

Global financial stability report also calls out highly leveraged non-banks

International Monetary Fund Headquarters 2, Washington, DC
Photo: John Harrington

Equity valuations remained lofty even after the stock selloffs in recent weeks, giving rise to the possibility of further price corrections amid heightened trade tensions, the International Monetary Fund has said.

In its latest Global Financial Stability Report, published today (April 22), the IMF said market conditions had tightened while economic uncertainty had increased. This, it said, meant that global financial stability risks had risen “significantly”.

The US equity market had been seeing

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