Are markets complacent about Ukraine?

Given the twin threats from worries about a “hard landing” in China and the crisis in Ukraine, it is perhaps surprising that global equities have not already fallen more than they have. We think that markets would be right to be sanguine about China’s economic slowdown and that neither Russia nor the West will allow events in the Crimean peninsula to spiral out of control. Nonetheless, there is ample scope for the crisis in Ukraine, in particular, to undermine sentiment further in the coming weeks.