US, UK Equities Drop as Ukraine Hostilities Escalate 

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US, UK Equities Drop as Ukraine Hostilities Escalate 

US shares dropped, with the Standard & Poor’s 500 Index paring a weekly gain, after heating up tensions in Ukraine bolstered haven-appeal assets. European stocks also declined, with German equities plunging sharply.

In US, Nordstrom Inc. shed 4% after posting sales that were lower than analysts’ projections. Monster Beverage Corp added 27% after Coca-Cola Co. reached a deal to buy shares in the company. Applied Materials Inc. soared 4.6% after predicting sales that may top analysts’ estimates.

The S&P 500 dropped 0.3% to 1,949.24 as of 1:25 pm in New York, reversing an earlier surge of 0.5%. The Dow Jones Industrial Average tumbled 85.16 points or 0.5% to 16, 628.42. Volume of equities trading in the S&P 500 was 10% higher than the average for the past 30 days at the time of the day.

“You saw the market drift up because it appeared that things had quieted down a little bit, but this Ukraine headline changes that. The move highlights the sensitive and reactionary nature of markets right now,” Walter Todd of Greenwood Capital Associates LLC in Greenwood, South Carolina told Bloomberg.

Ukrainian government soldiers fired at an armed Russian convoy that had entered its territory, the country’s military spokesman Andriy Lysenko told reporters in Kiev. The Russian Foreign Ministry said in a statement that Kiev was standing in the way of the aid convoy, and urged a cease-fire to facilitate delivery of supplies.

The Stoxx Europe 600 gauge of European equities lost 0.4% at 329.72. Earlier the gauge had been trading in positive territory, with intraday gains of about 1%, before the developments in Ukraine twisted it lower, MarketWatch reported.

The German DAX 30 index dropped 1.4% to 9,092.60, although it had reached 1.1% before the plunge. In France, the CAC 40 closed 0.7% lowerat 1,417.82.

Russia’s MICEX edged higher, closing up 0.7% at 1,417.36.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com