ESMA August 2024 TRV report warns against increased market volatility

 The European Securities and Markets Authority (ESMA) publishes the TRV (Trends, Risks and Vulnerabilities) Risk Monitor twice a year. In the recently published report of August 2024 (TRV Risk monitor No. 2 2024) it warns against increased volatility and underestimation of the risk associated to interest rate changes.

Equity volatility is anticipated to be higher in 2024 compared to 2023, influenced by geopolitical risks and upcoming national elections in 40 countries. Markets anticipate a near-term monetary loosening but uncertainty about the rate-cutting schedules across markets will also drive volatility in the markets.