The Bank for International Settlements warned on Monday, December 7, about"overstretched valuations" on financial markets, saying that promising news on vaccines was eclipsing the uncertain economic outlook.
"While markets have moved in the right direction in response to news about the vaccine, they are above or close to the levels that prevailed before the pandemic, when questions about overstretched valuations were already present," said Claudio Borio, head of the BIS monetary and economic department. Established in Basel, Switzerland, in 1930, the BIS is owned by 62 central banks, representing countries that account for about 95% of global gross domestic product.