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Investment Weekly

Stocks and geopolitical shocks
19 April 2024

    Chart of the week – Stocks and geopolitical shocks

    The recent escalation of events in the Middle East puts geopolitical risk back on the radar for global investors. Typically, geopolitical shocks – and a higher geopolitical risk premium – mean spikes in market volatility, higher correlations among risky assets, and risk-off moves favouring safe-havens. But history also tells us that most of these events have short-lived effects on markets.

    Chart of the week – Stocks and geopolitical shocks

    More from this week:

    Market Spotlight

    • EM high yielders surging ahead

    Lens on…

    • Unloved defensives offer cheap protection
    • Spillover effects of US strength
    • Building infrastructure in Asia

    Download the full report PDF, 2.86MB