off-the-wire

ECB's Schnabel sees 'disconnect' between stock market valuations and fundamentals

Kitco Media
By Reuters
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Reuters
ECB's Schnabel sees 'disconnect' between stock market valuations and fundamentals teaser image

LONDON, May 7 (Reuters) - European Central Bank board member Isabel ​Schnabel said on Thursday ‌that there appeared to be a disconnect between ​record stock market valuations ​and the risks facing ⁠the global economy.

"There really ​seems to be a ​kind of disconnect," she said at an event at the ​London School of ​Economics. "One could question whether ... markets are ‌possibly ⁠a bit complacent here." Schnabel said markets appeared to assume that damage to ​energy ​supply ⁠chains from the Iran war would ​be rapidly reversed - ​something ⁠she viewed as unlikely - and had very optimistic ⁠expectations ​for productivity gains ​from artificial intelligence.

Reporting by David Milliken; ​editing by Marc Jones

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