IMF warns of market disconnect amid rising geopolitical risks and complacency in investors.

The International Monetary Fund (IMF) cautions that global markets may be underestimating geopolitical risks, creating a dangerous disconnect between rising tensions and low market volatility. The IMF's Global Financial Stability Report warns of potential market shocks due to complacency among investors. It calls for stricter regulation of corporate debt and non-bank financial institutions, and highlights risks from the growing use of artificial intelligence in finance.