The Iran war has stock markets on tenterhooks
In this week’s ‘Chart of the Week’ we examine how stock markets have performed during previous conflicts in the Middle East involving the US.
The chart shows the performance of the MSCI World Index over the first 100 days following the start of the war, specifically for
– Operation Desert Storm to liberate Kuwait in 1991
– The Afghanistan War in 2001
– The Iraq War in 2003
The stock markets mostly reacted negatively only in the short term or in the run-up to these conflicts. In all three cases, the global equity index was well into positive territory 100 days after the start of the war. In 1991, the dollar also strengthened significantly, which boosted returns in Pounds somewhat.
Reactions remain limited for now. Measured in pounds, there was a decline of just 3 per cent. Prices have stabilised in recent days.
This content is for general information purposes only and does not constitute financial advice or a personal recommendation. Past performance is not a reliable indicator of future results. Investments can rise or fall in value, and you may receive less than you originally invested.
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