How Does the Russian-Ukrainian War Rock Stock and Commodity Markets? Fresh Insights from Joint Network-Connectedness Analysis

This paper examines the connectedness network among 27 NATO stock markets, Russian stock market and a set of three commodity indices (energy, precious metals and agricultural commodities) over the period 2006–2022. The empirical results reveal that the connectedness structure has shifted following the Russian invasion of Ukraine. Moreover, hit by a series of Western sanctions, Russia’s stock market appears to be the most isolated of the considered markets during the war period. Furthermore, the energy, agricultural and precious metals commodities seem to be efficient hedging instruments for investors in the stock markets of the NATO countries during the war period