BIS: Artificial calm in markets cannot last
Review presents latest evidence of fault lines running through financial markets
Recent resilience in markets is merely a period of "uneasy calm", the Bank for International Settlements (BIS) warned in its latest quarterly review, published on November 6.
Markets have bounced back well from shocks related to the increasing likelihood of a Federal Reserve rate hike in December. Market-implied probabilities of a hike are now as high as 70%, the BIS said, but investors do not look particularly rattled.
Nevertheless, the Fed hike could be the jolt that releases the pressure that
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