Europe faces 'severe' risk of disorderly financial market correction: Lagarde

FRANKFURT - The risk of an abrupt correction on Europe's financial and housing markets is high, European Central Bank President Christine Lagarde said on Monday.

"Risks to financial stability have perceptibly increased since the beginning of this year," she said in her capacity as the Chair of the European Systemic Risk Board, the European Union's financial risk watchdog.

"While the correction in asset prices has so far been orderly, the risk of a further and possibly abrupt fall in asset prices remains severe," she said.