The International Monetary Fund stresses that geopolitical risks, such as conflicts and trade tensions, may affect share prices and global financial stability

A recent IMF report highlights that high-risk events, such as international conflicts and trade tensions, can cause significant equity price corrections, threatening global financial stability. The IMF emphasizes that risks have increased significantly after 2022, with military conflicts, such as the invasion of Ukraine, having the biggest impact, leading to significant declines in equity returns. The institution recommends that financial institutions be prepared to deal with these risks by maintaining adequate capital and using stress tests.