Investors underestimated the risks of an escalation in Ukraine, said David Thebault of Global Equities, a Paris-based asset manager. This week, they got “a wake-up call” as Russia’s grip on Ukraine’s Crimean peninsula tightened ominously.
Many Western markets slid by around 1% on Monday alone, while gold jumped to a four-month high as rattled investors sought out the traditional safe haven.
Russia bore the brunt of the sell-off amid talk of Western sanctions hitting the economy. Russian stocks fell by 12% on Monday and the rouble slid to yet another record low against the dollar and the euro.
Market heavyweight [...]
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