BofA Warns Markets Too Optimistic With 20-Year Low Risk Premium

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Published: 2 hours ago

Bank of America's Sebastian Raedler warns equity markets underestimate global economic risks as energy disruptions create fragile outlook. Risk premiums hit 20-year lows despite mounting concerns. Risk-off sentiment could strengthen safe-haven USD and JPY while pressuring risk-sensitive currencies. Energy disruption concerns may particularly impact EUR given Europe's vulnerability to supply shocks.

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