Putin lowers the threshold for nuclear strikes, tensions between Russia and the United States impact global markets | Real Time Headlines

Global stocks fell on Tuesday as investors turned to safe-haven assets as global markets reacted to rising tensions between the world’s two nuclear powers, Russia and the United States.

Pan-European Stoke 600 At 12:23 pm London time, the index fell nearly 1%, hitting 498.56 points, its lowest level since August. In the United States, Stock futures bind to Dow Jones Industrial Average down 0.5%, S&P Futures fell about 0.2%, while Nasdaq 100 Futures down 0.1%.

The Russian state news agency said Russian President Vladimir Putin revised Russia’s nuclear doctrine and outlined the conditions that would prompt Moscow to deploy a nuclear arsenal, leading to a drop in prices. TASS reports Tuesday.

Crucially, Russia has now broadly expanded the circumstances under which it would consider nuclear retaliation to include “large-scale launches of enemy aircraft, missiles and drones against Russian territory, across Russian borders, and attacks on its ally Belarus,” “Tas said.

Prospects of potential nuclear escalation prompt investors into safe-haven markets gold Prices were up 0.8% at 11:52 a.m. London time. In the currency market, yen Increased 0.7% and 0.36% respectively EUR and Dollar Each will take place at 12:26pm London time. this Swiss francMeanwhile, it rose 0.3% against the euro.

“The sharp decline in bond yields and USD/JPY is certainly noteworthy, but I think what’s more telling is how quickly it disappeared,” Wells Fargo macro strategist Erik Nelson told CNBC via email.

“As we head into the final weeks of the year, the bias clearly remains towards higher inflation and stronger growth. Market participants will likely recall headline risks from the early stages of the Russia-Ukraine war, and that may fade away as long as any signs of escalation remain rhetorical in nature. , any decline in yields and USD/JPY will not happen.

Although Moscow has expressed interest in updating nuclear theory months agobut the amendment is still implemented within days America’s decision Allowing Kiev to use U.S.-made long-range missiles on Russian soil – a major reversal of Washington’s policy toward the war in Ukraine.

“The conflict is escalating…I would obviously like to see some kind of immediate reaction, a knee-jerk reaction,” said Tiffany McGhee, chief executive and chief information officer of Pivotal Advisors.

However, she stressed the need to take a longer-term view of the market impact, noting that there have been similar short-lived reactions since Russia’s massive incursion into neighboring countries in February 2022.

“But in the longer term, this is the third year of the conflict, and although initially we saw prices spike… they have now leveled off,” she said.

Oil markets, which have been most directly affected by the war, remained in negative territory on Tuesday after Western sanctions on Russian oil supplies increased, even as the likelihood of a confrontation between the world’s two largest crude producers increased.

ice cubes brent contract At 12:33 a.m. London time, the contract expiring in January fell 0.37% and the contract expiring in December fell 0.37% NYMEX West Texas Intermediate Crude Oil Futures prices were down 0.74% compared to Monday’s settlement.