Rising geopolitical tensions in Ukraine could hit the economic recovery in Europe and lead to a sell-off in emerging markets, according to Luca Paolini, chief strategist at Pictet Asset Management, part of swiss private bank Pictet.

Rising geopolitical tensions in Ukraine could hit the economic recovery in Europe and lead to a sell-off in emerging markets, according to Pictet Asset Management, part of Swiss private bank Pictet.

Luca Paolini, chief strategist at Pictet Asset Management, said that following Russia's intervention in the Crimea, the escalating crisis in Ukraine could potentially slow down economic growth in Europe if the gas supply from Russia to European countries is disrupted.

“Should the situation deteriorate and result in heightened tensions between Russia and the EU, a major casualty could be Europe’s economic recovery, which is vulnerable given that the region imports roughly 25 per cent of its gas from Russia, half of which flows through Ukraine. Under this scenario, the euro would likely weaken sharply against the dollar," said Paolini.

“More broadly, with the recent rally in global stocks showing signs of fatigue, the Ukraine crisis could prove the trigger for a market correction," he added.

A number of wealth management firms have commented on the crisis and its perceived impact on their business. To see an example, click here.