SHANGHAI : Global stocks extended a sell-off, the yen strengthened, and U.S. Treasury prices rose on Thursday as investors sought shelter in safe-haven assets amid growing fears of a full-scale Russian invasion of Ukraine.
Asset markets have seen a sharp increase in volatility, with oil racing to near $100 per barrel and the Cboe Volatility Index, known as Wall Street's fear gauge, up more than 55per cent over the past nine days. "A supply shock to commodities and the need for a higher geopolitical risk premium though may mean inflation remains elevated for longer with the risk the hiking cycle may need to be steeper," said Tapas Strickland, director of economics at National Australia Bank.
The global flight to safety boosted the yen, with the dollar dropping 0.05per cent to 114.91. The euro was down 0.2per cent on the day at $1.1281 and the dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was up at 96.344.