Friday, 25 February 2022 (YJC)_ US bank JP Morgan has warned that rising energy prices and other waves of tensions between Russia and Ukraine could hurt US stock markets and disrupt US economic recovery.
According to RT, the rise in energy prices and other waves of tensions between Russia and Ukraine could hurt US stock markets and disrupt the US economic recovery, US bank JP Morgan has warned.
The bank's strategist said:
Energy price shocks amid a strong focus by central banks on controlling inflation can reduce the outlook for economic growth by reducing investor sensitivity.
The US bank said some large multinational corporations derive most of their revenue from Russia and Ukraine.
The bank announced a list of companies whose sales are declining due to tensions between the two countries, including Philip Morris (8%), Pepsi (4.4%) and McDonald (4.2%).
The bank also announced:
The indirect risks of this conflict are more significant, which could include slowing global economic growth and rising consumer spending due to rising oil and food prices, supply chain disruptions, devaluation of credits and assets, and security risks.
According to the investment bank, the biggest risk to US stock markets is the fact that central banks are focused on tackling inflation.
The US Federal Reserve is expected to cut interest rates next month to counter inflation; The US inflation rate rose to 7.5 percent in January, the highest figure in 40 years.
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