Euronext financial markets under the influence of the war in Ukraine

Abstract

Introduction. The war in Ukraine, which entered the active phase on February 24, 2022, affected all spheres of life in most countries of the world, including Euronext, which is the leading pan-European market infrastructure connecting European economies to global capital markets to accelerate innovation and sustainable growth. At the primary level, European companies are affected by the destruction of trade and investment ties. At the secondary level, the operating conditions of European companies are radically changing under the influence of sanctions restrictions imposed against the aggressor country. All this leads to the uncertainty of the financial environment and the need to take into account many non-economic factors and world trends, which can lead to paradoxical conclusions.

The purpose of the article is to study the impact of the war in Ukraine on the activity indicators of the pan-European organization Euronext.

Method (methodology). The methodological basis of the study is scientific works about the current state of financial markets. The following methods were used: dialectical, generalization, comparison, statistics analyses, system analysis, observation, induction and deduction.

The results. The beginning of the active phase of the Russian war in Ukraine led to a significant impact on most of the world's leading stock exchanges. The deepest drop in market capitalization is observed on the Nasdaq-US market and among the largest continental European stock exchanges. According to the research results, it was proved that the drop in market capitalization indicators, industrial indexes, and indicators of capital attraction both on the stock market and on the debt market is connected precisely with the consequences of military actions on the territory of Ukraine, the introduction of sanctions against the Russian Federation and the latter's attempts to blackmail European country by reducing the supply of energy resources. At the same time, it has been determined that Euronext's business model demonstrates sustainability and margin of safety due to its wide geographical coverage, the acquisition of the Borsa Italiana group and the significant diversification of services.