Topic analysis

Stock markets will fall, Bank of England deputy governor says

Sarah Breeden, Bank of England deputy governor for financial stability, warned that record-high global stock markets fail to fully price in macroeconomic risks including stretched AI stock valuations and concerns over private credit, predicting an eventual downward adjustment. She expressed fears of multiple risks crystallizing simultaneously, noting the Bank is focused on ensuring financial system resilience, while her comments may have contributed to a 0.5% drop in the FTSE 100 on Friday amid ongoing worries about the Iran war.