<2> Trading Day: War fuels stagflation fears
<3> The Looming Threat of Stagflation
<4> The global economy is facing a growing threat of stagflation, a combination of high inflation and stagnant economic growth. The ongoing war in Ukraine has exacerbated this threat, leading to a surge in commodity prices and a decline in investor confidence.
<5> Rising Commodity Prices
<6> The war in Ukraine has disrupted global supply chains, leading to a sharp increase in commodity prices. The price of oil has risen to over $100 per barrel, while the price of wheat has surged to a 14-year high. These price increases have contributed to a rise in inflation, which is now above 5% in many countries.
<7> Impact on Economic Growth
<8> The surge in commodity prices has also had a negative impact on economic growth. As consumers face higher prices, they are reducing their spending, leading to a decline in demand for goods and services. This decline in demand has resulted in a slowdown in economic growth, which is now below 2% in many countries.
<9> Investor Confidence
<10> The war in Ukraine has also led to a decline in investor confidence. The uncertainty surrounding the conflict has made