Скачать или смотреть Geopolitical uncertainty introduces new risks to assets

The low-level conflict between India and Pakistan has and hit the economies of both countries hard. The markets are jittery, flights have been cancelled and the lucrative IPL has suspended cricket matches for a week. Let's take a closer look at the impact of the violence between these nuclear neighbours. Pakistan's economy was already in big trouble. Now , the global ratings agency, Moody's warns that if tensions with India keep rising, it could set back its chances of getting its economy back on track. Moody's expect growth to slow -- making it harder for the government to stabilise the economy. Amid this backdrop of regional friction, diplomatic efforts are underway elsewhere. Pakistan and the United States have reportedly held high-level trade discussions, with both sides expressing a commitment to strengthen their economic partnership. Turning to the financial markets, India's benchmark stock index took a hit on Friday after the army reported overnight drone and munitions attacks by Pakistani forces. Both the Nifty and Sensex dropped by 1.1 percent. The ripple effects of these geopolitical tensions are being felt in the global energy markets. While no direct threats to oil production or supply routes have been reported, analysts link the rebound in prices to regional instability concerns. In response, Indian Oil Corporation Limited insisted on Friday that it has enough fuel stocks nationwide and its operations are running smoothly.