Why stock exchange tumbles on sensing rumors about wars?Nowadays the media is prominently covering news about drastic fall in the Pakistan's stock market. It is being attributed to the perceived escalation in the Indo-Pak animosity. Such fluctuations occur in Indian stock markets also from time to time when we see Sensex and Nifty falling.
The basic question is as to why stock exchange tumbles on sensing rumors about wars? Is war that bad that it affects the whole economic structure of a nation?
In case so then why we talk about waging a war?