ECB's Schnabel sees 'disconnect' between stock market valuations and fundamentals

LONDON - 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)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published May 7, 2026 at 11:05 AM.