The market Goldman Sachs: Russian invasion could have more severe impact on stock markets than Crimean occupation

Stock market the reaction to a possible Russian invasion of Ukraine may be more severe than in 2014, when Russia occupied the Crimean peninsula, estimates the American bank Goldman Sachs.

The stock market has been in sharp decline around the world on Monday as the U.S. National Security Adviser Jake Sullivan warned on Sunday, according to intelligence, that the Russian attack could take place on any day.

Goldman Sachs equity strategist Peter Oppenheimer said the TV channel CNBCin an interviewthat the negative impact of the occupation of Crimea on the stock market was in the order of about 5 percent.

He said it would now make sense to expect that the Russian attack could drop the stock market by more than five per cent.

The Stoxx 600 index, which broadly follows European equities, had fallen by almost three per cent in the afternoon, and the OMXH general index on the Helsinki Stock Exchange had fallen by more than two per cent.

Over the weekend, several countries called on their citizens to leave Ukraine because of the threat of war. Diplomatic talks to ease tensions continue on Monday.