Global stocks fall with increased Ukraine Russia tension

Global stocks fall with increased Ukraine Russia tension

The markets experienced a decline on Tuesday when the geopolitical tensions between Ukraine and Russia escalated. The Dow fell by 300 points at the beginning of the trade and then lost another 430 points, which corresponds to a decline of 1 %. The S&P 500 also fell by 0.5 % and the Nasdaq Composite gave up by about 0.2 %.

causes of the market decline

The sales pressure in the markets is the result of a change in the nuclear doctrine Moscow after the bidding administration of Ukraine has given approval to use further weapons against goals in Russia. "Today the concern is reflected that the Russia Ukraine conflict will be hotter after 1,000 days," said Art Hogan, chief market strategist at B. Riley Wealth Management.

investors are looking for safe ports

Not only fell, but investors also turned to secure systems such as gold and US state bonds. The gold prices rose on Tuesday, while the returns of US state bonds sank.

Significant escalation of the conflict situation

The Ukraine fired American Go Gun against goals in Russia. On Sunday, President Joe Biden of Ukraine approved the use of the rockets in the Russian area and thus lifted a monthly ban.

price developments at the raw oil market

The oil prices, which rose sharply at the beginning of the Russia Ukraine War in 2022, remained largely stable on Tuesday morning. Keith Lernner, chief market strategist at Truist Advisory Services, warned that the geopolitical risks could increase again after Putin reduced the threshold for the use of nuclear weapons. However, since the markets were already prepared for Moscow's reaction, they only observe a moderate decline, while US state bonds and gold are attracted to attractiveness.

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