High valuations and low volatility don't reflect the level of economic growth nor the geopolitical uncertainty facing the market, the Autorité des Marchés Financiers says in a mid-year report on main risks to global markets.While stock markets have shown resiliency, the French regulator warns of the "systemic threat" fromn a "sharp market correction."

As AMF continues... Equity market volatility therefore now appears to be decorrelated from political uncertainty indexes...