Impact of Global Conflict

This week’s article seeks to discuss some potential effects of global conflict on the local securities market. Globalisation has led to the international community becoming quite interconnected. This interconnectedness has increased contagion risks. Contagion refers to a situation where a shock in a particular economy or region spreads out and affects others. With the global economy recovering from the impact of the COVID-19 pandemic, the conflict between Russia and Ukraine has been causing knock-on effects throughout the world. The distribution and cost of oil have been greatly impacted and the conflict has also fueled the weakening of Russia's and Ukraine's financial markets. There is also the risk of the entire European financial market being affected.

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