The global economic recovery in 2016-17 has been steady. However the international financial market was not stable because unsettled debt burden and slow adjustment of the economic structure. Especially，some political factors，a series of uncertainties and the slow progress of monetary policy normalization had major impact on the market moves. The general economic recovery in developing countries helped prevent external financial risks. However，domestic debt burden，foreign exchange market risks and trade protectionism posed challenges to the financial stability. A series of political events shocked the market in 2017. These shocks affected investors’ risk pricing in an instant. Supported by economic fundamentals，global stock markets boomed. In foreign exchange market，the US dollar depreciated against major currencies in face of the uncertainty of Trump administration. Going forward，the advance to normalize monetary policy in developed countries as well as the possible rise of interest rates will affect the global financial market. The emerging and developing countries will probably face a new round of capital outflow，challenging the financial stability in these economies.