European securities markets risk still high

The latest risk report from the European Securities and Markets Authority (ESMA) says that overall market risks for European securities markets remain high with the market risk indicator remaining at very high – the highest level – with a stable outlook, while liquidity and contagion risk remain at high with a stable outlook.

Says chairman Steven Maijoor: “ESMA initially raised its market risk indicator to very high in 2015, in response to potential emerging risks we had identified around asset valuations, falling growth and volatility in the commodity markets. This analysis has been borne out by subsequent market developments and justifies its maintenance at very high.”