Climate risk to stock, bond markets? Why IMF is analysing share markets country by country

By: |
Published: October 21, 2019 1:48:56 PM

With an aim to analyse the impact of climate on global financial markets, the International Monetary Fund (IMF) is examining whether it’s priced into the valuations of the stock and bond markets all across the world.

Stocks, Stock market, Donald Trump, impeachment talk, trump impeachment talk, Uk parliament, market newsThe dollar index, which measures the greenback against a basket of six major currencies, fell 0.22%, with the euro up 0.19% to .1012. (Reuters)

With an aim to analyse the impact of climate on global financial markets, the International Monetary Fund (IMF) is examining whether it’s priced into the valuations of the stock and bond markets all across the world, global news agency Reuters reported. The study is to find out the risks and their extent posed by climate on these markets, the report added. The report will cover the stock markets country by country, Reuters reported citing Tobias Adrian, financial counselor, and the director of the IMF’s monetary and capital markets department.

There are certain economies such as Bahamas where climate poses short-term risk, while others face long-term risks. The news agency Reuters also reported that there is a set of investors which says that the risk due to climate is underpriced in mortgage-backed securities, especially in the areas of Texas and Florida in the US.

Also read: Small cap guru reveals his ‘biggest bet’; Sharma Sharma tells stocks in which he made big money

Meanwhile, the Asian stocks edged up on Monday as Chinese shares reversed early losses, supported by hopes for progress in resolving the US-China trade war, while sterling slipped after the British parliament delayed a crucial vote on a Brexit withdrawal deal. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.25 per cent. Chinese shares advanced 0.31 per cent, while Japan’s Nikkei rose 0.30 per cent.

The pan-region Euro Stoxx 50 futures were up 0.22 per cent, German DAX futures 0.19 per cent and FTSE futures just 0.04 per cent. The pound slipped from a five-month high against the dollar and the euro after the British parliament forced Prime Minister Boris Johnson to seek a delay to an Oct. 31 deadline for Britain’s departure from the bloc.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Oil prices dip on weak demand outlook, supply concerns
2Asian shares edge higher, pound stumbles on Brexit drama
3Still in a bear hug: Benchmark indices driven by a handful of stocks, large swathes of market under-performing