“Markets find it fiendishly difficult to price in geopolitical risk,” said Edward Park, chief investment officer at U.K. investment firm“Over the weekend, we’ve had a worsening and then an improvement of sentiment. It does seem that we’ll have another week of uncertainty.”
Investors worry that a war between Ukraine and Russia could prolong elevated inflation in developed economies by disrupting supplies of important commodities. Russia is among the world’s largest suppliers of oil, as well as the biggest exporter of wheat, and a major metals producer. Ukraine is also a major world supplier of corn and wheat.
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