US equities plunged as treasuries rose with gold, as appeal for haven assets jumped in the wake of fears that tension between the West and Russia over Ukraine will impede global economic recovery.
The Standard & Poor’s 500 Index lost 0.2% as of 1:15 pm in New York, paring its sharpest declines after dropping below the 100-day average price. The Stoxx Europe 600 Index declined 0.7% to a low last registered three months ago. Stocks for emerging markets tumbled to a five-week low as Micex Index of Russia lost. Gold advanced 0.4%.
Russia unraveled a range of restrictions on food shipments from western nations, as the stalemate with the US and its partners over Ukraine deteriorated into the worst such hostility in the post-Cold-War era. The European Central Bank kept key rates unaltered at record lows as the conflict strengthened impediments to recovery of the euro area. US stocks initially climbed after a drop in unemployed claims last week pushed the 30-day averaged to an eight-year low.
“The uncertainty over the situation in Ukraine has overshadowed the positive economic data we saw earlier today. The market has adapted to the positive data, but when it comes to geopolitical tensions, it’s hard to adapt. Tensions rise and we’re reaching the last level before the situation spins out of control,” John Manley of New York-based Wells Fargo Funds Management told Bloomberg.
The Dow Jones Industrial Average dropped 32 points or 0.2% to 16,410, according to ABCNews. The Nasdaq composite was flat at 4,555.
Phone and internet firms were among the biggest losers. Windstream Holdings dropped 3o cents or 2.6% to $11.26 after the firm said its earnings declined by 64% in the second quarter. Fox jumped $1.57 or 4.9% to $33.91 after posting better-than-expected fourth quarter earnings on Wednesday. The firm’s X-Men, Rio 2 and The Fault in Our Stars propelled its earnings.
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To contact the reporter of this story; Jonathan Millet at firstname.lastname@example.org