The “Basic System” can be ongoing as investors rethink American assets, the European Central Bank says

The European Central Bank said on Wednesday that “changing the statute” can be ongoing in the financial markets, as it seems that investors are re -evaluating the danger of American assets in the wake of commercial tariffs.

In the latest financial stability review, the central bank discussed the recent rise in market fluctuations against the backdrop of global trade tensions driven by the American tariff policy.

Markets interact sensitively with repeated updates about trade and fees from the United States and its trading partners. Stocks first Fell When the American president Donald Trump The sweeping definitions have announced before Apostasy When I announce a temporary pause for 90 days on duties.

“During the turmoil, the market – which can be considered the ability to trade in financial assets quickly without moving prices in an unfamiliar way – in the financial markets in the eurozone, the European Central Bank noticed.” This was despite some unconventional transformations away from some traditional safe havens such as the American cabinet and the US dollar. “

Although this may be associated with technical factors, the European Central Bank may also have broader operators.

“These moves may also reflect perceptions of a more fundamental change, as it seems that investors are re -evaluating the risk of American assets, and may lead to wider transformations in global capital flows,” the European Central Bank pointed out. “This would have long -term consequences for the global financial system.”

On Wednesday, European Central Bank Vice President Lewis de Gindus suggested that there is a risk of market correction below the line. He said that there are two main things that must be thought of, which are the high assessments and strong certainty.

“The markets are very benign regarding this scenario. They think, as you know, that growth will be low, but we will not enter into the recession, the inflation will decrease, and monetary policy will follow its example,” De Gindos said.

He said that the risks are still appearing, and there are various issues such as what can happen in relation to commercial policies and organization from the US government is unclear.

“These elements lead to fluctuations. I think the volatility, perhaps, as you know, as a result of these two elements … assessments and uncertainty.”

In its report, the central bank indicated that it had previously warned of “the weaknesses posed by high assessments that are not supported by the basics,” saying that “this source of risks may be partial now.”

The European Central Bank said that Trump’s “mutual” tariff was the operator for this.

Earlier this week, the European Union has set its latest economic expectations, with its total local products for 2025 Climate For each of the European Union and the euro to 1.1 % and 0.9 %, respectively. This compares with a former Appreciation of 1.5 % growth for the European Union and the expansion of 1.3 % for the euro area.

The main inflation is expected to slow down at the same time, which is 2 % less than the European Central Bank goal in 2026.