is the heatwave in Europe going to affect financial markets?

Guys, Europe is experiencing an unending heatwave with temperatures up by more than 4 degrees, but I'm unclear how this can impact financial markets. Please which asset classes do you think the heatwave is going to affect so i apply caution when trading them?

P
@paul_petit - 1 year ago

The heatwave will affect prices of soft commodities such as grains, livestock etc. Farmers are going to suffer irrigation issues, drought, livestock mortality etc. and this will cause the price of these commodities to increase.

Stock prices of EU companies will also be affected negatively because some workers will not be able to work due to the heat.

Stocks of energy companies in the EU will also fall because they may have to shut down some of their plants which pump in river water to cool them. If the river water is too hot, the machinery will not be able to cool down.

O
@ozgal_galzo - 1 year ago

The heatwave in Europe is expected to end in a few weeks so I don't think it will do much damage to the economy of the affected countries. However, like Paul said, commodity prices will certainly rise.

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