Breaking: S&P 500 futures drop as Ukraine's military fires mortar shells and grenades at four LPR locations

FXStreet Team FXStreet

Early Thursday morning in Europe, risk-aversion hits global markets as Sputnik shared news of Ukraine firing of mortars & grenades on Luhansk People's Republic (LPR) locations.

"The attack came amid tensed relations beween Russia and NATO, whose members have been claiming that Moscow's alleged military buildup near Ukraine's borders would lead to an 'invasion'," as reported by the Russia media Sputnik.

Market implications

Following the news, the US Dollar Index (DXY) gained across the board while reversing the early-day losses. On the same line was a sudden drop in the S&P 500 Futures, as well as the US Treasury yields, down 0.20% intraday and eight basis points (bps) at the latest.

The risk-off mood could well be witnessed in downbeat prices of AUD/USD and NZD/USD. However, gold seems to benefit from the rush to risk-safety as it regains $1,873 by the press time.

It’s worth noting that a lack of details may doubt the news and reverse the recent move should traders hear nothing concrete. Hence, the market players need to remain cautious.

Read: US T-bond yields, S&P 500 Futures portray indecision over Russia, Fed

Fresh updates

Following the news, Reuters quoted sources to reveal more information. "Russian-backed rebels in eastern Ukraine accused Kyiv government forces on Thursday of using mortars to attack their territory, in violation of agreements aimed at ending the conflict, the RIA news agency said," as reported by Reuters.

Author

FXStreet Team

FXStreet

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.