European Central Bank Commissioner Panetta: Stock market rise after Iran conflict is due to underestimation of risks.

European Central Bank board member Panetta: Continued hostilities in the Middle East, coupled with pressure in the energy markets, may lead to Italy becoming more cautious and tightening credit standards. Eurozone inflation is currently hovering around 3%, and is expected to remain above this level until early 2027. When considering future interest rate decisions, the ECB's goal is to maintain stable inflation expectations and limit the indirect and second-round effects of shocks. The integration process of the Italian financial sector can strengthen individual institutions and the overall system, encourage investment, and enhance efficiency. Risks related to rising energy prices, tightening financial conditions, and ongoing geopolitical uncertainties seem to be only partially reflected in market evaluations. Multiple indicators show that the stock market's rise after the Iran conflict is due to an underestimation of risks.