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The war in Ukraine has a negative impact on the stock exchanges closest to Kiev, in a sample of 80 countries. After the spike in news on the conflict, markets remain tense
by Isabella Bufacchi
Measuring geopolitical risk on equity markets is difficult because geopolitical effects are difficult to identify. But quantifying the impact is not impossible. This is demonstrated by a new study and a new ECB index that measure the geopolitical tensions on global markets unleashed by the war in Ukraine.
Geographical distance and real-time news
In a blog published today on the ECB website, entitled “How the markets react to war and geopolitics”, the effect of …