The Bank of England signals increased risks in the financial markets due to high valuations of the stock market, especially in the artificial intelligence sector.

The Bank of England has warned of the risk of a sudden increase in financial markets, particularly in the field of artificial intelligence. Geopolitical tensions, market fragmentation, and pressures on sovereign debts contribute to these risks. Valuations of assets are close to historical highs, and a potential reassessment of expectations for AI earnings could trigger reactions in a chain across global markets. Financial institutions recommend caution, emphasizing the need to diversify portfolios in the face of economic uncertainties.