Safe-Haven Surge: Markets React to Russia's Nuclear Doctrine Warning

Safe-haven assets saw a notable rise following Russia's warning on its nuclear doctrine, signaling possible retaliation. The announcement led investors to move towards government bonds, the Japanese yen, and gold. German yields dropped, while European aerospace stocks saw minimal recovery.

In response to Russia's recent warning on its updated nuclear doctrine, investors turned to safe-haven assets on Tuesday. The warning emphasized potential retaliation in the event of attacks on the nation or its allies, prompting a market shift.

Following Russian President Vladimir Putin's endorsement of the revised doctrine, there was an upsurge in government bonds, the Japanese yen, and gold holdings. Notable market movements included a decrease in German government yields, which fell by up to 8 basis points to 2.292% during the day.

The value of gold surged to a session peak of approximately $2,626 per ounce, and the U.S. dollar saw a 0.9% decline against the yen, reaching 153.28. European aerospace and defense stocks managed to cut earlier losses, closing with a marginal 0.2% dip.

(With inputs from agencies.)