The Russia-Ukraine war has significantly impacted global stock markets due to uncertainty, supply chain disruptions, and energy price volatility. Key effects include:
1. Energy Markets: Rising oil and gas prices due to sanctions on Russian exports impacted energy and commodity stocks globally.
2. Defense Stocks: Companies in the defense sector saw increased demand as governments boosted military spending.
3. Emerging Markets: Risk aversion led to capital outflows from emerging markets, weakening their currencies and stocks.
4. Inflation: Higher energy and food prices fueled inflation, pressuring central banks to tighten monetary policies, affecting growth stocks.
5. Sanctions: Companies with exposure to Russia faced losses, and financial sanctions disrupted trade and banking sectors.
Investors shifted toward safe-haven assets like gold and U.S. treasuries during the conflict's peak. The long-term impact depends on the war's duration and geopolitical developments.
