University of Sfax Researchers Publish New Study Findings on Risk Management (Global Uncertainty and BRICS+ Equity Markets: Spillovers from VIX, Geopolitical Risk, and U.S. Macro-Financial Shocks): Insurance – Risk Management

2025 DEC 08 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Fresh data on risk management are presented in a new report. According to news reporting out of Sfax, Tunisia, by NewsRx editors, research stated, “This paper investigates how global uncertainty and macro-financial shocks transmitted to BRICS+ equity markets between April 2016 and July 2025.”

The news reporters obtained a quote from the research from University of Sfax: “A vector autoregressive (VAR) framework, complemented by Granger-causality tests, variance decompositions, and impulse response functions, is employed to examine four key drivers: U.S. financial market volatility (VIX), geopolitical risk (GPRD), U.S. inflation expectations (T5YIE), and the U.S. term spread (T10Y3M). The findings show that the VIX functions both as a recipient and a transmitter of shocks, amplifying volatility across BRICS+ markets, with India, Brazil, and the Gulf states acting as important nodes in the global contagion network. By contrast, geopolitical risk shocks have only short-lived effects on both U.S. yields and emerging equity markets. Shocks to U.S. inflation expectations and yield-curve dynamics transmit quickly to BRICS+ markets but dissipate within a few days, underscoring efficient market adjustment. Overall, the evidence points to a multipolar structure of global contagion in which BRICS+ markets exert growing influence alongside the United States.”

According to the news editors, the research concluded: “These results offer important implications for risk management, portfolio diversification, and policy coordination under heightened uncertainty.”

For more information on this research see: Global Uncertainty and BRICS+ Equity Markets: Spillovers from VIX, Geopolitical Risk, and U.S. Macro-Financial Shocks. Risks, 2025,13(11):217. (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks13110217.

Our news journalists report that more information may be obtained by contacting Chourouk Kasraoui, Faculty of Economics and Management of Sfax, University of Sfax, Sfax 3018, Tunisia. Additional authors for this research include Amal Khmiri, Catalin Gheorghe, Ahmed Jeribi.

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