War in Ukraine will likely cause stagflation in the global economy and negatively impact the stock market, an analyst has predicted.and the Moscow stock exchange remained closed all last week. However, Paul Sommerville, CEO of Sommerville Advisory Markets, said the sanctions would mean rising costs for westerners as well - all of which would negatively impact the stock market:
“Oil prices have been on the move for the last year and a half… it’s now trading at $115,” Mr Sommerville told“Wheat prices are up 70% this year but they were already up 40% before the war broke out.“Gas prices are up 70%. So you can see things are [leading to] stagflation. “What does stagflation mean? It means there is an inflationary environment, the growth is slowing in the world economy. So that’s where the worry lies and it should worry investors because that should compress margins for stocks.
“So I would expect stock prices to get hit as the year goes on because their import costs are going up hugely but they’re not going to pass those on to consumers. “So stagflation, which we’ve been going on about for maybe a year and a half, two years, is really the thing we have to worry about.”
In times when the only news is about Ukraine, Irish government silently remove travel restrictions. We should never forget and people of the world should never forget silent genocide using experimental injections