Putin lowers the threshold for nuclear strikes, tensions between Russia and the United States impact the market | Wilnesh News

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 U.S., stock futures tied to the Dow Jones Industrial Average fell 0.5%, S&P futures fell about 0.2% and Nasdaq 100 futures fell 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 broadened the circumstances under which it could consider nuclear retaliation, with Kremlin spokesman Dmitry Peskov saying the updated guidelines “provide that the Russian Federation reserves the right to use conventional weapons in cases of aggression.” the right to use nuclear weapons.” Any aggression against the Russian Federation by a non-nuclear-weapon country with the participation or support of a nuclear-weapon country is considered a joint attack,” the National Broadcasting Corporation (NBC) said.

The prospect of a potential nuclear escalation has prompted investors to enter safe-haven markets, gold Prices were up 0.8% at 11:52 a.m. London time. In the currency market, yen It was up 0.7% against the euro and 0.36% against the dollar at 12:26 pm London time. Meanwhile, the Swiss franc rose 0.3% against the euro.

Referring to the dollar and yen, Erik Nelson, macro strategist at Wells Fargo, told CNBC via email: “The sharp decline in bond yields and the dollar against the yen is certainly noteworthy, but I think what’s more telling is that it… faded. How fast.

“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 expressed interest in updating its nuclear doctrine months ago, the amendments come within days of the U.S. decision to allow Kiev to use U.S.-made long-range missiles on Russian soil – here’s what Washington says about nuclear A major reversal of policy. It remains to be seen whether other allies in the NATO alliance that provide vital military and humanitarian aid to Ukraine will join the White House in authorizing Kyiv to use domestically manufactured weapons in an offensive against Russian territory.

NATO allies have so far largely refrained from taking this step, fearing retaliation from Moscow. Putin has previously suggested that Russia would risk a nuclear provocation if the coalition formally entered the war, and said in June that Russia was building up its nuclear arsenal — already a nuclear arsenal — after the Kremlin inherited the vast majority of weapons from the disintegrating Soviet Union. The world’s largest nuclear arsenal.

On Tuesday, the 1,000th anniversary of the conflict in Ukraine, the Russian Defense Ministry said Kiev had deployed six U.S.-made long-range ballistic missiles in nighttime attacks in the country’s western Bryansk region, NBC reported. Translated on Google Facebook updatesThe General Staff of the Ukrainian Armed Forces said they “set fire” in Bryansk, but did not specify whether Kiev used an arsenal of U.S.-made weapons for this purpose.

“The conflict is escalating…I would obviously expect 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.