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Downed Russian warplane highlights geopolitical risks
Global stocks sold off and investors sought out havens like the yen and gold, but the overall reaction to Turkey’s downing of a Russian jet fighter remains relatively muted. The incident, however, underscores longer term risks, analysts said. The knee-jerk reaction decidedly favored so-called haven assets, but economists and market strategists expect those gains to be short lived. Flows are likely to reverse, they said, as confidence returns and the theme of monetary policy divergence—particularly between a tightening U.S. Federal Reserve and an easing European Central Bank—reasserts itself. Indeed, ... (full story)