The central bank of central banks warns AI frenzy could trigger stock-market slump and jeopardize economy

The BIS annual report warns that rich stock market valuations, investor complacency, and circular financing are creating vulnerabilities that could spill over into credit markets. The message implies elevated downside risk for risk assets and tighter conditions if credit stress emerges. The report is broadly cautionary and could weigh on sentiment across equities and bonds.

Analysis

The BIS annual report warns that rich stock market valuations, investor complacency, and circular financing are creating vulnerabilities that could spill over into credit markets. The message implies elevated downside risk for risk assets and tighter conditions if credit stress emerges. The report is broadly cautionary and could weigh on sentiment across equities and bonds.