Stock Market Winners and Losers During the Russia-Ukraine War
- By Sam van de Schootbrugge
- 6 min read
Summary
- A new Swiss Finance Institute working paper reviews the performance of 3,500 global stocks around the Russia-Ukraine war.
- In the US, investors expect the war to slow the transition to a low-carbon economy, while the opposite is true in the EU.
- ESG ratings have so far provided no predictor of stock market success, while companies with greater inflation and international trade exposure have underperformed.
Introduction
Russia’s invasion of Ukraine surprised many investors, with stock markets reacting very negatively throughout February and early March. The turbulence reflected uncertainty over how to navigate various layers of risk, such as exposure to Russia, oil and gas, renewables, inflation and more. Uncertainty remains, but a review of which stocks did and did not do well should offer clarity as we move forward.
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