Risks to financial stability in the euro area are rising amid a slowing global economy and escalating trade tensions, the European Central Bank warned on Wednesday.
Uncertainty surrounding the global economic growth outlook have led to "bouts of high volatility in financial markets", the bank said as it released the latest Financial Stability Review report.
Slower than expected growth and a possible worsening of trade tensions could trigger further falls in asset prices, the report warned. "If downside risks to the growth outlook were to materialize, risks to financial stability may arise," ECB Vice-President Luis de Guindos said. "The growth outlook is central to all the main risks to financial stability."
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.