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A full-blown trade war would hit the real economy ‘quite rapidly,’ ECB warns
Growing uncertainty about global economic growth could lead to “bouts of high volatility” in financial markets, the European Central Bank (ECB) warned Wednesday. In its Financial Stability Review (FSR), which provides an appraisal of potential risks to stability in the euro area, the ECB cautioned that weaker-than-expected growth and a possible escalation of trade tensions could trigger further falls in asset prices. Global stocks have gone through periods of heavy selling on the back of an escalating trade war between the U.S. and China. The Dow Jones Industrial Average index and the S&P are down more than 4.6% ... (full story)
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