New IIF risk index sends warning signal

Tokyo

RISK is building up in financial markets ahead of an expected interest rate hike by the US Federal Reserve next year and investors need to be "more cautious as market uncertainty rises in anticipation" of this, the Washington-based Institute of International Finance (IIF) warned on Thursday.

The IIF, which represents the biggest global banks and other financial institutions, issued its unusually upfront warning in launching a new, broad index it has developed to measure stress in financial markets.