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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