ECB Executive Highlights Economic Concerns

European Central Bank (ECB) Executive Board member Isabel Schnabel emphasized the detrimental effects of trade fragmentation on economic growth and inflation during her speech at the Masterclass of SciencesPo in Paris, France.

The Impact of Geopolitical Uncertainty

"Uncertainty about geopolitics, protectionism, and economic policy has surged. Sharp rise in tariffs weighs on stocks in affected sectors," Schnabel stated, pointing out the challenges facing the global economy.

Opportunities in a Single Market

Despite these challenges, Schnabel also highlighted the vast opportunities presented by a single market, underlining its potential to foster economic resilience and growth.

Defense Spending on the Rise

Additionally, she touched on how geopolitical uncertainty is driving increased defense spending, subsequently boosting defense stocks.