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Global equity, commodities and bond market response to Israel-Hamas war

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  • Martins, António Miguel

Abstract

This study used event study methodology to examine the impact of Hamas’ terrorist attack against Israel in global equity, commodities, and bond markets. The results show that negative abnormal returns in global equity markets are limited to the Middle East region. The major world economies - China, Europe and the US, present insignificant abnormal returns. The increase in geopolitical risk, however, brings good news for commodities and bonds that observe significant positive abnormal returns with the intensification of the conflict. This result means that bonds and commodities are a hedge against stocks on average and a safe haven against conflict risk.

Suggested Citation

  • Martins, António Miguel, 2024. "Global equity, commodities and bond market response to Israel-Hamas war," Finance Research Letters, Elsevier, vol. 67(PB).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pb:s1544612324009309
    DOI: 10.1016/j.frl.2024.105900
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    References listed on IDEAS

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