Crypto Market Sheds $150 Billion as China Hits Back at the US

Stretched asset valuations and pressures in core sovereign bond markets are keeping financial stability risks elevated amid heightened economic uncertainty. These vulnerabilities could be amplified by the growth of nonbank financial institutions—through their growing importance as market makers, liquidity providers and intermediaries in private credit, real estate, and crypto markets. As we detail in our new Global Financial Stability Report, stress testing shows that the vulnerabilities of these nonbank intermediaries can quickly transmit to the core banking system, amplifying shocks, and complicating crisis management. To be clear, policymakers have had nonbanks on their radar for some time. They include insurance companies, pension funds, and investment funds; and while they do not take deposits, they play an increasingly large role in global markets. Regulatory treatment also varies considerably, with dedicated supervisory frameworks for insurance companies and less comprehensive prudential oversight for many others. While nonbanks can help facilit GROUP SAYS IN SEMIANNUAL GLOBAL FINANCIAL STABILITY REPORT THAT RISKS REMAIN ELEVATED IMF SAYS RISK ASSET PRICES ARE WELL ABOVE FUNDAMENTALS, INCREASING ODDS OF 'DISORDERLY' CORRECTION IMF WARNS OF 'COMPLACENT' MARKETS IN FACE OF GEOPOLITICAL, ECONOMIC AND FINANCIAL RISKS IMF…

ECB's Lagarde: Economy has been relatively resilient to tariffs. ECB LAGARDE SAYS ECB GENERALLY IN A GOOD PLACE LAGARDE SAYS MONETARY POLICY IN EUROPE HAS DONE ITS JOB ECB's President Lagarde: I would never say ECB is done cutting rates. LAGARDE SAYS RISKS TO INFLATION OUTLOOK `FAIRLY BALANCED'