Oil's Big Jump; Markets' Small Reaction: A Risk Of Mispricing?

FTSE Russell1.05K FollowersFollow5ShareSavePlay(15min)CommentsSummaryThe conflict in the Middle East is a new challenge to the global economy and financial markets.The events that saw larger price moves in percentage terms include the 1974 oil embargo shock, the 1986 oil collapse, the 1990 Gulf War, and the Covid global demand collapse.The volatility for the US Russell 1000 quickly dropped back below pre-crisis levels.Looking across the industries, there has not been much of a cyclical pattern, with the defensive Consumer Staples industry down almost twice as much as cyclical Consumer Discretionary. FXQuadro/iStock via Getty Images By Indrani De, CFA, PRM, Head of Global Investment Research, FTSE Russell and Mark Barnes, PhD, Head of Global Investment Research, Americas, FTSE Russell Introduction The conflict in the Middle East is a new challengeThis article was written byFTSE Russell1.05K FollowersFollowFTSE Russell is a leading global provider of index and benchmark solutions, spanning diverse asset classes and investment objectives. As a trusted investment partner we help investors make better-informed investment decisions, manage risk, and seize opportunities.Market participants look to us for our expertise in developing and managing global index solutions across asset classes. Asset owners, asset managers, ETF providers and investment banks choose FTSE Russell solutions to benchmark their investment performance and create investment funds, ETFs, structured products, and index-based derivatives. Our clients use our solutions for asset allocation, investment strategy analysis and risk management, and value us for our robust governance process and operational integrity.For over 40 years we have been at the forefront of driving change for the investor, always innovating to shape the next generation of benchmarks and investment solutions that open up new opportunities for the global investment community.