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Fed Concerns Have Distracted Investors From Russia-Ukraine Risk

  • German, Eastern European markets most exposed to conflict
  • Volatility expected across risk assets if tensions escalate

A potential escalation of the standoff at Ukraine’s border risks hitting economies and companies around the world, and catching a number of investors off guard.

The long-simmering tensions over Russia’s troop buildup in the region has the potential to trigger a new bout of market volatility, just as equity markets struggle to digest a less favorable macroeconomic backdrop, which sparked the recent rout.