WAR: How a wider conflict may affect you
Caribbean Money Daily.
Tensions between the West and Russia are on the rise. In the week ended Russian forces launched 37 airstrikes using 48 guided bombs and more than 270 kamikaze drones. They also carried out over 2,000 artillery attacks on Ukrainian defensive positions and civilian settlements.
Russian president Vladimir Putin is additionally issuing new promises to the West as NATO nations approve the use of new weaponry against Russia itself.
Meanwhile war between Israel and Middle eastern neighbors have heightened and Iran and North Korea pose continued nuclear threats. The economy and global stock markets are affected.
Markets in general are trying to shake off rising tensions in the world. In the last week they experienced volatility as investors considered mounting quarrels s between Russia and the United States.
The Dow dropped about 450 points shortly after the opening bell on Tuesday last but has since rebounded. The S&P 500 and Nasdaq also resurged after early losses.
The upset occurred as Moscow changed its nuclear doctrine in response to the Biden administrations announcement of its intent to use of longer-range weapons against Russia.
Caribbean Nations are already on tenterhooks, recalling the start of the Ukraine war in 2022 which for the region became progressively oppressive.
Affected were prices for energy and other commodities, including wheat and other grains.
A commodity price hike and other movements resulted in inflationary pressures. Inflationary pressures led to a round of interest rate hikes as central banks tried respond proactively. Growth slowed globally.
Debora D’Souza, writing for Investopedia that in general “ The outbreak or anticipation of war can lead to a sharp sell-off in stocks. At the same time, investors may move towards traditionally safer assets like gold, bonds, or currencies perceived as safe havens. Despite the initial negative reaction, stock markets have shown resilience over time. Indeed, they often quickly recover as the situation stabilizes or as the scope of the conflict becomes clearer.”
Markets have for the most part ignored recent conflicts related to the Middle East and Iran. However, analysts note that a broader regional war, however, may have a more severe impact, affecting oil and other commodity prices.
D’Souza says that from the start of World War II in 1939 until it ended in late 1945, the Dow was up a total of 50%, more than 7% per year.
Mark Armbruster, president of Armbruster Capital Management, who studied the period from 1926 through July 2013 and found that stock market volatility was actually lower during periods of war.
Consumers in the Caribbean have a more painful recollection of the impacts of war. Russia’s decision to invade Ukraine further complicated global supply chain challenges and will increased inflationary pressures.
Pandemic-related disruptions to the supply chain resulted in shortages of goods.
While some Caribbean nations introduced price controls as the cost of goods spiraled, others did not and prices have remained at the same levels.
Again, the stage is set for higher crude oil prices. Russia is a key producer of crude oil and natural gas, feeding many parts of Europe.
Interruptions to the ports could also create even more shipping congestion and lead to food inflation, the analysts note.
-Caribbean Money Daily
Russian president Vladimir Putin is additionally issuing new promises to the West as NATO nations approve the use of new weaponry against Russia itself.
Meanwhile war between Israel and Middle eastern neighbors have heightened and Iran and North Korea pose continued nuclear threats. The economy and global stock markets are affected.
Markets in general are trying to shake off rising tensions in the world. In the last week they experienced volatility as investors considered mounting quarrels s between Russia and the United States.
The Dow dropped about 450 points shortly after the opening bell on Tuesday last but has since rebounded. The S&P 500 and Nasdaq also resurged after early losses.
The upset occurred as Moscow changed its nuclear doctrine in response to the Biden administrations announcement of its intent to use of longer-range weapons against Russia.
Caribbean Nations are already on tenterhooks, recalling the start of the Ukraine war in 2022 which for the region became progressively oppressive.
Affected were prices for energy and other commodities, including wheat and other grains.
A commodity price hike and other movements resulted in inflationary pressures. Inflationary pressures led to a round of interest rate hikes as central banks tried respond proactively. Growth slowed globally.
Debora D’Souza, writing for Investopedia that in general “ The outbreak or anticipation of war can lead to a sharp sell-off in stocks. At the same time, investors may move towards traditionally safer assets like gold, bonds, or currencies perceived as safe havens. Despite the initial negative reaction, stock markets have shown resilience over time. Indeed, they often quickly recover as the situation stabilizes or as the scope of the conflict becomes clearer.”
Markets have for the most part ignored recent conflicts related to the Middle East and Iran. However, analysts note that a broader regional war, however, may have a more severe impact, affecting oil and other commodity prices.
D’Souza says that from the start of World War II in 1939 until it ended in late 1945, the Dow was up a total of 50%, more than 7% per year.
Mark Armbruster, president of Armbruster Capital Management, who studied the period from 1926 through July 2013 and found that stock market volatility was actually lower during periods of war.
Consumers in the Caribbean have a more painful recollection of the impacts of war. Russia’s decision to invade Ukraine further complicated global supply chain challenges and will increased inflationary pressures.
Pandemic-related disruptions to the supply chain resulted in shortages of goods.
While some Caribbean nations introduced price controls as the cost of goods spiraled, others did not and prices have remained at the same levels.
Again, the stage is set for higher crude oil prices. Russia is a key producer of crude oil and natural gas, feeding many parts of Europe.
Interruptions to the ports could also create even more shipping congestion and lead to food inflation, the analysts note.
-Caribbean Money Daily
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