The French Financial Markets Authority (AMF) published its 2025 mapping of markets and risks, finding that financial markets have remained resilient despite an increase in market risks and a broad-based rise in volatility that could persist in coming months. The assessment points to heightened uncertainty linked to US economic and trade policy and renewed geopolitical tensions, with potential implications for global growth expectations. Following the US announcement of new tariffs in early April, equity indices saw a sharp adjustment, with the CAC 40 down 12% between 2 and 9 April, before valuations rebounded to elevated levels after a moratorium and the opening of bilateral negotiations, raising concerns about further adjustment phases. Volatility has strengthened across all asset classes, including cryptoassets, which the AMF notes are attracting retail investors and appear more sensitive to economic and geopolitical conditions than in the past. French asset management withstood the early-April market moves, with net positive inflows into money market funds and limited flows in equity, bond and diversified funds, while the AMF flags commercial real estate funds and funds invested in illiquid assets such as unlisted assets as key watch areas given their growth and potential vulnerabilities under liquidity stress; cyberattacks are also increasing and readiness remains uneven, against the backdrop of the EU DORA regulation entering into force in January 2025. The AMF, the Prudential Supervision and Resolution Authority (ACPR) and the Bank of France are finalising the design of a system-wide stress test involving banks, insurers and investment funds.

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