(Bloomberg) — Equity markets have come round to the idea that Russia’s invasion of Ukraine could have long-term consequences for the global economy.
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European stocks slumped at the end of the week and are at the lowest in a year as the sweeping measures slapped on Russia disrupt trade with one of the world’s main suppliers of key commodities, especially energy.
U.S. stocks also declined, though by far less, reflecting the more limited exposure to Russia.
The latest moves mark a turnaround from the early reaction to the assault on Ukraine. An initial drop in stocks after the war started was followed by a rally, helped by a “buy the dip” mentality and speculation that central banks would back off on interest-rate hikes. Strategists at JPMorgan Chase & Co. and Citigroup Inc. pushed the idea of short-lived pain and that history pointed to the emergence of…
