Abstract

The world economy is developing to a new level with more challenges and more opportunities. However, the war between Russia and Ukraine has brought the world's energy resources into a tough situation. In this essay, we are going to set UK’s stock market as an example, to discuss since the war began in February 2022, the influence that brought to the European energy stock prices. We found two empirical results from the model. First, the positive correlation is existed between the excess return of energy stocks and the excess return of the market portfolio and the return of oil prices; Second, the Industrial production index and energy price CPI have no conspicuous influence on the returns of energy stocks. The results in this paper may benefit some relevant investors in the financial markets.

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