Headline: Bank of England warns global stock markets may be overvalued

Why this matters: A significant market correction could impact economic growth, investment, and consumer confidence globally.

Date: 24/04/2026

Tags: Business, Economy, Finance, UK

Summary:

• Sarah Breeden warns global stock markets appear too high relative to economic risks.

• Bank of England expects an eventual market “adjustment” but gives no timing or scale.

• Breeden highlights risk of multiple shocks occurring simultaneously, including macroeconomic downturns and falling asset valuations.

• Concerns include heavy investment in AI, with some comparisons to the late-1990s dotcom bubble.

• US markets have reached record highs despite warnings of major global energy shocks.

• UK FTSE 100 and US S&P 500 both near all-time highs after strong yearly gains.

• Growth of “shadow banking” private credit market raises concerns about financial system stability.

• Private credit sector has expanded to around $2.5 trillion without facing a major downturn test.

• Market fall could reduce household wealth, lower spending, and limit business investment and hiring.

• Bank’s focus is ensuring financial system resilience rather than predicting market movements.

Why this matters: A significant market correction could impact economic growth, investment, and consumer confidence globally.

What’s next: Regulators will monitor risks and assess financial system resilience in case of a market downturn.