Markets Play the ‘Dire Straits’ Tune

The scenes unfolding in the United Arab Emirates this week span from the surreal to the apocalyptic: luxury cars submerged in floodwaters, a plane taxiing across a runwaycum-lake, and furniture being swept off high-rise balconies. These stark images serve as a grim reminder of the tangible impacts of climate change. Coinciding with these events, a similar shift is evident in the sentiment of the financial markets. The prevailing sentiment has shifted dramatically from one of greed to one of fear, as a confluence of factors exerts pressure on market stability.