Economics

Global financial markets to face ‘moment of reckoning’, expert warns

Amundi investment analyst says significant economic adjustments inevitable due to rising interest rates and slowdown in growth

John O’Toole, head of multi-asset investment solutions at Amundi in Dublin: ‘The question is, has the real economy adjusted? We would say not yet. Have equity markets and companies adjusted? Not yet. Companies haven’t started laying people off, certainly not in a big way.’

A moment of reckoning that will cause a significant economic adjustment is fast approaching in global financial markets, a senior investment analyst has warned.

John O’Toole, head of multi-asset investment solutions at Amundi in Dublin, made the comments after a turbulent week for global markets following the collapse of Silicon Valley Bank in the US, which triggered a massive sell-off in banking shares and stoked fears of a new financial crisis.

In Europe, Credit Suisse ...