Russia attacks Ukraine: Markets will have to readjust to the shock

February 24, 2022

Market reaction: The worst-case scenario of a full blown attack to Ukraine has materialised. It’s risk-off on Russian assets; global risk assets are under severe pressure.

Global markets were not pricing in a war scenario and are now adjusting given the magnitude of this military move. It will take time for the situation to settle down. In the meantime, uncertainty and volatility will persist, with the possibility of seeing some excesses to the downside. This is not a time to try to buy the dip, as the market does not yet fully understand the impact of this geopolitical shock.

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