Eurozone markets are at the mercy of war
The war between Russia and Ukraine continues to dominate headlines and financial markets. The daily news flow coming out of the region is causing large swings in energy prices and European equity markets, as investors move back and forth from optimism to pessimism regarding a potential resolution of the conflict.
What you will learn:
- Predictably, investor confidence is sinking but the length of the war will be crucial in order to gauge its impact on the economy, and we could witness a sharp rebound on news of a ceasefire or an agreement between the two countries.
- For now, the main impact channel for the eurozone economy continues to be via higher prices and the impact on household real incomes.
- Inflation has risen to a record high of 5.9% and will probably rise further over the coming months.
- We still expect the eventual end of the conflict to bring about a sharp disinflationary impact from lower energy prices.
Tags:
Related services

Service
City Climate Scenarios
In-depth insights into the economic impacts of climate change and mitigation policies on cities and local economies throughout Europe, the US and Canada.
Find Out More
Service
Global Cities Service
Make decisions about market and investment strategies with historical data and forecasts for 900 of the world’s most important cities.
Find Out More