The French Financial Markets Authority has published its 2026 risk map, concluding that geopolitical uncertainty has become a structural feature of financial markets and that the conflict in the Middle East has worsened the macro-financial outlook through higher energy prices, tighter financing conditions and renewed inflation pressure. Markets have remained broadly orderly despite episodes of correction and volatility, but the authority says pre-existing vulnerabilities are building. In its risk outlook, market, liquidity and credit risks remain elevated, while contagion risk and operational risk including cyber are flagged as increasing into 2027. The report points to stretched equity valuations, historically low risk premia and strong concentration in large technology names as key market vulnerabilities. Sovereign and corporate funding costs have risen sharply, with new issuance taking place at materially higher yields, while crypto-asset markets remain in a correction phase, with total market capitalization down about 25% in the first quarter of 2026 and still 44% below its historical peak. In asset management, favorable market effects supported funds in 2025, but real estate funds remain exposed to weak property markets, and the rapid expansion of private credit is drawing closer scrutiny because of liquidity, valuation and interconnectedness risks, including as illiquid assets reach more retail investors. The authority also highlights growing cyber and operational risks from frontier artificial intelligence models, alongside rising retail participation in equities and exchange-traded funds and a sharp increase in crypto-related scams. The French Financial Markets Authority said it will continue to focus on operational resilience and cyber preparedness, including awareness actions for portfolio management companies, crowdfunding service providers and crypto-asset service providers. It also plans a thematic review in 2026 on how listed company boards address artificial intelligence, cybersecurity and geopolitics.
France Autorite des marches financiers2026-06-30
French Financial Markets Authority publishes 2026 risk map highlighting rising contagion and cyber risks
The French Financial Markets Authority's 2026 risk map says geopolitical shocks, higher energy prices and tighter financing conditions are worsening the macro-financial environment while leaving markets more vulnerable. It keeps market, liquidity and credit risks elevated and identifies contagion and cyber risk as rising, with private credit, AI-related operational threats and crypto-related retail scams among the main areas of concern. The authority plans further work on operational resilience and a 2026 governance review covering AI, cybersecurity and geopolitics.