Russia-Ukraine: a lot of bad news already priced in, but the outlook is deteriorating

March 10, 2022

We expect inflation to trend higher across emerging and developed markets and growth to be lower than initially expected, with higher risks for Europe and in particular countries more vulnerable to sanctions and energy price dynamics.

Market Reactions: markets remain highly volatile, with equity markets down but with some recent signs of stabilisation. Oil remains under pressure after the embargo on Russian oil instituted by the US and the UK. Demand for safe-haven assets, such as gold, is still high. Whilst a process of restauration of value is underway (initial repricing initiated prior to the crisis, crisis consequences on European assets then), it is incomplete and fragmented. In particular, it remains to be seen the real life impact of the first stages of “normalisation” confirmed by Fed and ECB. This argues in favour of a bit of patience as the likely additional volatility will offer entry points.

BACK
Subscribe to the Amundi Research Newsletter

Important legal information.

Please read these terms and conditions carefully.
 
This part of our website is for the attention of Professional and Institutional Investors and Home Office Personnel only. In the European Union, it is not for non-professional investors as defined by MIFID or in each local regulation for the general public. This website is solely for informational purposes.
 
This website does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service. Any securities, products, or services referenced may not be registered for sale with the relevant authority in your jurisdiction and may not be regulated or supervised by any governmental or similar authority in your jurisdiction.
 
Furthermore, nothing in this website is intended to provide tax, legal, or investment advice and nothing in this website should be construed as a recommendation to buy, sell, or hold any investment or security or to engage in any investment strategy or transaction. There is no guarantee that any targeted performance or forecast will be achieved.
 
Amundi owns the copyright and all other intellectual property rights in the website.

By choosing “Accept” you represent that you understand and agree to all the legal terms and conditions of this website.

porta. massa venenatis id luctus ut elementum sed libero fringilla Aliquam Curabitur