Will Ukraine Crisis Topple Markets?

Economists give their view on the impact of Ukraine's problems on the global economy - and how it may affect equity and commodity markets

Emma Wall 5 March, 2014 | 11:02AM

Alan Higgins, chief investment officer, Coutts

The complex situation in Ukraine brings potential for heightened volatility in the near term amid concerns of an escalation into a wider conflict. While the outcome is impossible to predict, our central scenario is that a wider conflict will ultimately be avoided.

As such, our six to 12 month views remain unchanged. We continue to expect a gradually improving global recovery and see equities outperforming bonds this year.

We still see Europe as the most attractive equity market over this longer-term view, supported by an improving economic and earnings outlook, and at this point we would see a substantial correction as a potential buying opportunity. For our longer-term strategic portfolios, we maintain our preference for equities over bonds and for Europe within equities, through what we expect will be a period of near-term volatility.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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