Safe-haven assets rallied sharply on Tuesday following Russia’s announcement of its updated nuclear doctrine, approved by President Vladimir Putin. The revised policy emphasizes inevitable retaliation against potential attacks on Russia or its allies, triggering heightened market caution.
Investors flocked to traditional safe-haven assets, including government bonds, the Japanese yen, and gold, amid concerns about escalating geopolitical risks.
Market Movements
- German Government Yields: Dropped as much as 8 basis points to 2.292%.
- Gold: Rose to a session high of $2,626 per ounce, reflecting strong demand.
- Japanese Yen: Strengthened significantly, with the dollar falling 0.9% to 153.28 yen.
Sector Impacts
European aerospace and defense stocks initially saw a 0.6% decline, but pared losses to end the day down just 0.2%, reflecting a partial recovery as investors assessed the broader implications of Russia’s statement.
