How Does the Russian-Ukrainian War Rock Stock and Commodity Markets? Fresh Insights from Joint Network-Connectedness Analysis

The outbreak of the war in Ukraine has had a profound and far-reaching impact on the global economy, with notable repercussions observed in stock markets, and particularly pronounced effects evident in commodities markets. This paper examines the connectedness network among 27 NATO stock markets, Ru...

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Bibliographic Details
Published in:Defence and peace economics 2024-08, Vol.35 (6), p.713-739
Main Authors: Ben Amar, Amine, Hachicha, Néjib, Rezgui, Hichem, Hammoudeh, Shawkat
Format: Article
Language:English
Subjects:
Agriculture
Commodities
Commodity markets
Connectedness
Economics and Finance
Global economy
Hedging
Humanities and Social Sciences
Impact analysis
Metals
NATO stock markets
Noble metals
Russian stock market
Russian-Ukrainian war
Sanctions
Securities markets
War
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Summary:The outbreak of the war in Ukraine has had a profound and far-reaching impact on the global economy, with notable repercussions observed in stock markets, and particularly pronounced effects evident in commodities markets. This paper examines the connectedness network among 27 NATO stock markets, Russian stock market and a set of three commodity indices (energy, precious metals, and agricultural commodities) over the period 2017-2023. The empirical strategy consists of time and time-frequency connectedness metrics. The empirical results reveal that the connectedness structure has shifted during the Russian-Ukrainian conflict. Moreover, hit by a series of Western sanctions, Russia's stock market appears to be the most isolated of the considered markets during the war period. Furthermore, the energy, agricultural and precious metals commodities seem to be efficient hedging instruments for investors in the stock markets of the NATO countries during the war period.
ISSN:1024-2694
1476-8267
DOI:10.1080/10242694.2023.2277031