The IMF published its latest Global Financial Stability Report in Bangkok, Thailand, during the IMF-World Bank Annual Meetings. The report finds that global financial markets have remained resilient, but financial stability risks remain elevated. “Global financial markets have held up surprisingly well despite multiple shocks and very high uncertainty to a large extent because of upward growth surprises, strong corporate earnings, but also optimism on AI. But resilience is not safety. Financial stability risks remain elevated and there are key risks that could spark market stress. First, an AI-related market correction if expectations on investment or profits disappoint.
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