TRADE TENSIONS CAN LEAD TO STOCK MARKET CRASHES, IMF SAYS "Geopolitical risks like trade tensions can trigger sharp stock market corrections and threaten financial stability, the IMF warned in a report Monday. Though it didn’t mention specific events, the IMF noted that conflict-related risks have surged since 2022. Research shows major events, like wars or terrorism, cut global stock returns by about 1% monthly, and 2.5% for emerging markets. Military conflicts, like Russia’s invasion of Ukraine, have even larger impacts. The IMF urged financial institutions to hold more capital, run stress tests, and manage risks proactively. The full Global Financial Stability Report will be released at the IMF-World Bank spring meetings, where Trump’s recent tariffs are expected to be a major focus. Recent market volatility, inflation fears, and recession risks underline the growing threat."