U.S. President Joe Biden gave an indicator that Russia was planning to invade Ukraine while Moscow accused Washington of ignoring security claims to the point of causing gold prices and safe-haven bonds to skyrocket.
The global equity gauge fell more than 1% even as the European zone recorded strong corporate gains despite a tense crisis.
The Crisis That Continues To Shake The Stock Market
Wedbush Securities Los Angeles managing director of equity trading, Michael James, said selling activity on Wall Street rallied late in the session and was squeezed by an ongoing geopolitical crisis that left the stock market in turmoil.
The pan-European STOXX 600 index fell 0.69% while the worldwide MSCI stock gauge closed lower at 1.49%.
The Dow Jones Industrial average index fell 1.78%, the S&P lost 2.12%and the Nasdaq Composite was down 2.88%.
The MSCI Asia-Pacific stock index rose 0.15% as signs of the Federal Reserve (Fed) less aggressively boosting sentiment.
Investors were seen buying government bonds, with yields on 10 -year treasury notes falling 7.5 basis points to 1.970% while German 10 -year government bonds fell 0.2 basis points to 0.229% following the Ukrainian crisis and weaker -than -expected US data.
The geopolitical crisis has caused panic among investors, as well as the efforts of the Fed and other central banks in combating soaring global inflation.
The dollar index, known as a safe-haven, initially flattened before plunging, indicating that investors have not yet panicked over the geopolitical crisis.
However, the Japanese Yen strengthened 0.48% at 114.91 per dollar while the dollar index fell 0.007%.
The euro was down 0.11% at $ 1.1361.
The Impact of the Crisis on Commodities
Gold prices rose above $ 1,900 for the first time since June while US gold futures rose 1.6% to $ 1,902 an ounce.
Gold prices fell more than 2%, with US crude oil prices falling $ 1.90 at $ 91.76 a barrel and Brent oil down $ 1.84 at $ 92.97.
