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Amid a deteriorating economic outlook and heightened trade tensions, market risk remains “very high,” European regulators are warning.

The European Securities and Markets Authority (ESMA) published a report on Thursday detailing its risk assessment for securities markets as of the third quarter of 2019.

Overall, ESMA said that market risks are very high, “particularly in securities markets, where high asset valuations and search-for-yield prevail.”

Additionally, credit risk is elevated too, the ESMA said, “with deteriorating corporate debt quality and the growing share of BBB-rated debt as main concerns.”

These elevated risks come in an environment of weakening growth, along with continued uncertainty due to a slew of unpredictable external factors, such as Brexit, U.S.-China trade tensions and geopolitical risk.

“Large intra-day movements confirm that markets remain sensitive to the news flow,” the report said.

Looking ahead, these same factors are expected to “remain key risk drivers,” ESMA said.