Market Reacts to Russia's Nuclear Doctrine Shift

Global financial markets experienced heightened volatility as investors sought safe-haven assets following President Putin's announcement on Russia's nuclear doctrine, leading to a rally in government bonds and the Japanese yen. The change was spurred by geopolitical tensions between Russia and the United States over Ukraine.

Global financial markets witnessed significant fluctuations on Tuesday after Russian President Vladimir Putin unveiled modifications to the country's nuclear strategy. This development intensified tensions with the United States over Ukraine, prompting investors to seek refuge in secure financial assets.

The yield on government bonds decreased as prices increased, with a focus on Putin's statement and the mounting international tensions. The yields on both the U.S. Treasury and Germany's government bonds fell, while the Japanese yen appreciated against the dollar as a traditional safe-haven currency.

Analysts noted the broader market impact, indicating that the safe-haven trend was seen in the dollar, Swiss franc, and gold. European stocks declined, impacting the STOXX 600 index, while U.S. stock futures also faced losses, reacting to both geopolitical developments and economic news.

(With inputs from agencies.)