Financial markets surprisingly calm given Middle East conflict, ECB's VP says
Financial markets have taken the escalating conflict in the Middle-East in their stride but the situation could have a dampening effect on euro area growth, European Central Bank Vice President Luis de Guindos said on Thursday.
"Markets perception on geopolitical risk has been overall quite benign, and markets have been surprisingly calm given developments in recent days," de Guindos told a financial event. "But markets tend to price geopolitical risks in a binary way: on or off.
"While it is impossible to predict what will happen, developments may well have a dampening impact on growth in the euro area."
(Reporting by Balazs Koranyi, Editing by Louise Heavens)
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