He emphasized the need for caution within financial markets
Branson noted a tendency among investors to maintain optimistic outlooks until presented with concrete evidence to the contrary regarding geopolitical developments Should these optimistic expectations fail to materialize, he believes a scenario comparable to the April sell-off could easily re-emerge, posing risks to both equity and bond markets
While short-term market fluctuations are not typically a primary concern for financial supervisors, Branson warned that a sudden shift in market sentiment and risk assessment could negatively impact financial stability He cited the April dynamic, where initial declines were partially offset by later conciliatory statements regarding trade disputes, as an example of this volatility The regulator remains vigilant concerning the potential for similar abrupt changes in the current environment
